Question

What is budgetary control? a) The degree to which the CFO controls the budget. b) Another name for a flexible budget. c) The use of budgets in controlling operations. d) The process of providing information on budget differences to lower level managers.

Answer 1

Answer: Option (C)

Explanation:

Budgetary control is referred ton as the system of conduct which is further  used in order to ensure that a company's revenues and their expenditures conform closely to their financial plan. This system usually involves setting up the personal objectives for the managers which are mostly inclined towards the budget, alongside a set of the rewards which are further triggered when these objectives are accomplished.