An effective system of budgetary control can make a powerful contribution to the management of a business. One of the major grumbles about budgetary control is that a budget, perhaps prepared many months before, can hardly be valid under altered circumstances. A flexed budget is helpful for control purposes, and such a budget can be used as a primary measure of performance. A method of budgetary control which enables information to be presented in a concise but understandable form is based on the use of expense ratios. The actual sales and operating costs are tabulated, and the budget costs calculated in £ sterling by multiplying the actual sales value by the relevant budget cost ratio. Budgetary control based on expense ratios have many applications, and are both easily understood and easy to apply. The actual results are compared with the budget and the budget.