Budgetary Control for Managers

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In this course, we will discuss the use of financial statements, financial analysis, and budgeting as management controls.

Budgetary control, one of the most commonly used methods of managerial control, is the process of setting targets for an organization’s expenditures, monitoring results and comparing them to the budget, and making changes as needed.

As a control device, budgets are reports that list planned and actual expenditures for cash, assets, raw materials, salaries, and other resources. In addition, budget reports usually list the variance between the budgeted and actual amounts for each item.

Budgets that managers typically use include expense budgets, revenue budgets, cash budgets, and capital budgets.
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Management
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