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Any process a company or government puts in place to help ensure accuracy and honesty in its budget. Budgetary control may set goals for expected revenues or planned expenditures. It almost always includes a system to monitor compliance over time.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
budgetary controla system for controlling COSTS and REVENUES by comparing actual results with BUDGET estimates and then taking corrective action where necessary See COMPARISON STATEMENT.
Budgetary control involves two main stages:
- preparation of the budget prior to the start of the budget period, forecasting and planning activities for that future period;
- control by taking action based upon an evaluation of actual performance during the budget period in the light of the plans and standards developed in the budget.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson