The budgetary control function may include evaluating the difference
A)between current operating costs and last year's operating costs.
B)between budgeted amounts and actual results.
C)between the original budget and the final adjusted budget.
D)allowed in the current production costs.
E)between the historical cost and the current cost.

Question

Quizplus · Accepted Answer

Budgetary control function involves comparing budgeted amounts with actual results at regular intervals to identify variances, take corrective action and ensure that goals are achieved within the budgeted costs. Option A compares current operating costs with last year's costs, which doesn't involve budgetary control function. Option C compares original budget with the final adjusted budget, which is done to track changes in planned expenses but doesn't involve evaluating variances against actual results. Option D compares allowed production costs with actual costs, which is a part of cost control function. Option E compares historical cost with current costs, which is a part of cost accounting function.

The Budgetary Control Function May Include Evaluating the Difference