ABSTRACT
The subject of this chapter is budgetary control. Although not defined in the literature, budgetary control may be considered to represent how organizations seek to ensure the efficient and effective utilisation of financial resources. For the purposes of this chapter, traditional budgetary control refers to the idea of ensuring the efficient and effective utilization of financial resources through processes of monitoring, feedback, motivation, variance correction, and performance evaluation at the level of the individual responsibility centre. Budgets (resources) and budgeting (resource allocation) may be considered to form part of the overall budgetary control process.
