Final answer:
The second stage of budgetary control is budget formulation, where a detailed financial plan is created and resources are allocated following set objectives.
Step-by-step explanation:
The second stage of budgetary control is budget formulation.
After identifying the need for a budget during the agenda setting phase, the next step involves creating a detailed financial plan.
This plan allocates resources to the various areas where funds are required, following objectives and goals that have been set.
The budget formulation stage is where different stakeholders may contribute their proposals and justifications for the desired budgets in their respective departments or sectors.
This stage is also characterized by negotiations and revisions until a final budget is decided upon.