ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Budgeting & Budgetary Control. Is a short-term financial plan which acts as a guide to achieve the pre-determined targets. It is a comprehensive and coordinated plan, expressed in financial terms, for the operations and resources of an enterprise for some specific period in the future.

Detailed explanation-2: -Budgetary control is financial jargon for managing income and expenditure. In practice it means regularly comparing actual income or expenditure to planned income or expenditure to identify whether or not corrective action is required.

Detailed explanation-3: -Having a budget keeps your spending in check and makes sure that your savings are on track for the future. Budgeting can help you set long-term financial goals, keep you from overspending, help shut down risky spending habits, and more.

Detailed explanation-4: -Budgetary control is the process of developing a spending plan and periodically comparing actual expenditures against that plan to determine if it or the spending patterns need adjustment to stay on track. This process is necessary to control spending and meet various financial goals.

Detailed explanation-5: -Question: How do organizations use budgets to control operations? Answer: Organizations use budgets to evaluate performance. By comparing the budget with actual results, companies can determine whether employees, and the company as a whole, have performed as expected.