ABSTRACT
Budgetary control is a term used to describe the process of drawing up a plan of how the company is expected to perform in the coming period, usually a year. It then explains the use of that plan as a measure against which actual performance is judged and the appropriate controlling action taken. A budget is sometimes referred to as the organisations business plan expressed in financial terms. There are several key issues involved in the setting up of a budgetary control system they are the need for a goal, Plan directed to achieving goal, Method of achievement, Resource requirements, Human implications, profit planning acceptability. Break-even analysis may also be used to target profit, and sales. In the public sector, the primary objective is to give the best possible service for the limited amount of finance available. The plan is to control the finances to within a small margin, say 2", of the planned expenditure.
