A system of budgetary control checks actual income and expenditure against a budget so that progress towards set objectives may be measured and remedial action taken if necessary. Budget control statements comparing actual and estimated expenditure are issued weekly or monthly. These statements will be issued in considerable detail to departmental heads, and in less detail to higher management. Budget control statements must; if any necessary medial action is to be taken in time, be issued as soon as possible after the close of the period to which they relate, and for this reason need not be of the same accuracy as accounting statements and may be based partly on estimated data. The development of computerized accounting procedures has greatly facilitated budgetary control.
|Reference: The Penguin Dictionary of Economics, 3rd edt.|