Write a short summary of budgetary control as a method of managerial control.

Budgeting Control is a management operation that monitors budget, control cost, and service in a given accounting year. It helps the management to set a regulate performance and financial goal and helps the company get the desired results. It’s a procedure, in which company functions are outlined in advance, and compared with the real effect later to see if the desired results are acquired or not.

This comparison helps the company to identify the variation and take appropriate action according. A company’s different budget is prepared and controlled. However, for effective budgeting, future planning has to be done wisely. It also operates as a root of motivation for the employee by establishing a standard against which their achievement will be evaluated. Therefore, it encourages them to achieve set goals efficiently.

Budgeting also helps to allocate the budget to all the departments or unit according to their need and requirement.