Question

What is budgetary control?

Another name for a flexible budget
The degree to which the CFO controls the budget
The use of budgets in controlling operations
The process of providing information on budget differences to lower level managers

Answer 1

Answer: The use of budgets in controlling operations.

Budgetary control indicates how appropriately managers use budgets to examine and regulates costs and operations over a given period i.e. , this is a mechanism for managers to set goals(financial and performance) in accordance with budgets, analyze the results, and alter performance, as required.

Therefore, the correct option is "the use of budgets in controlling operations"

Answer 2

The use of budgets in controlling operations

Step-by-step explanation:

Budgetary control

The efficiency with which the manger utilizes the budget to control and monitor the costs and operations in a given period of time .

uses the budget as the controlling operations .

Steps of Budgetary Control:

a. Establish a plan or a target of the performance , which coordinates all the activities of the business .

b. Record the actual performance .

c. Compare the actual performance with the planned .

d. Calculate the differences , variances and the reasons .

e. Act immediately , if necessary, to remedy the situation.