In ten pages a corporation's system of budgetary control is considered in terms of its advantages and disadvantages with neither being advocated for this merely represents the pros and cons of the accounting method known as budgetary control. Fifteen sources are cited in the bibliography.
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like among its customers and in the community. Still another way is what products or services a company sells or provides. The main way in which corporations measure their own
effectiveness, however, is based, in part, on how much money they obtain for goods or services they provide. And one way in which cash and costs are through budgets and
accounting systems. One of the most prevalent types of accounting systems used in companies involves budgetary control systems. Budgetary control systems
are not exactly new - most people use a form of them when it comes to even household finances; they come up with a budget, and then compare what they
actually spend to the budget they formulated. As a result, they can either increase the budget or pare down their spending. But when it comes to budgetary control systems in
corporations, things arent quite as simple. While the tool itself is simple, the reasons for using the tool can be complex. This paper will examine the concept of budgetary controls,
what they are, and what their advantages and disadvantages are for corporations. Some Definitions Before discussing budgetary controls and this tools advantage
to a corporation, it would first be helpful to define what, precisely is involved in budgetary control systems. First of all, a budget delineates how much money a corporation has
(or wants) to spend, and how much money it expects to take in based on those spending efforts. More formally, a budget is defined as: " . . . a
formal statement of the financial resources set aside for carrying out specific activities in a given period of time . . . it helps to coordinate the activities of the