Definition: is a regulation mechanism implemented by an organization to establish standards and goals related to the company’s income and expenditures. This mechanism also includes the constant overseeing and improvement of these standards to make sure that the company’s budget is being spent efficiently. Additionally, budgetary control allows a business to compare the actual financial statements with the figures that were planned prior to a specific accounting period and implement changes that will increase the profitability of the company.
In a Sentence:
Thanks to the correctly implemented budgetary control system, we were able to cut down on our supplier’s costs by twenty-six percent.
Our budgetary control is severely lacking, as during the last three quarters our company has been spending more money than it has earned.
Ever since Claire was appointed as the head of the budgetary control committee, funds distribution became much more efficient.
Synonyms and related words: budget, financial goal, management accounting, cost accounting