what are the methods of budgetary control and what procedure is followed?

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   Preparation of budget is the first step of budgetary control system implementation of budget is the second phase which needs continues reporting of budget at short intervals preparation of budget alone will not achieve much unless a comparison is made regularly between the actual performance and the budgeted performances. Thus proper reporting is essential element in budgetary control. The daily/weekly/monthly reports depending on the nature of operations involved in the results of various functions are regularly submitted to the management and follow up action has to be taken immediately. In respect , budget reports showing the following information will prove useful :
   (a) Budgeted level of activity and budgeted cost of the same.
   (b) Budgeted cost of actual level of activity.
   (c) Actual cost of actual activity.
   (d) Variances between budgeted figures and actual figures.
   (e) Reason of variances

   Answer by shikhakaur 466 days ago