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) between the historical cost and the current cost.

Question

Quizplus · Accepted Answer

Budgetary control involves comparing and evaluating the budgeted amounts with the actual results that have been obtained. By doing so, managers can identify any variances, either favorable or unfavorable, and take corrective actions if necessary to bring the costs in line with the budget. Therefore, option B is the best choice for this question. Options A, C, and D are not entirely incorrect, but they do not accurately describe the budgetary control function as option B does.

The Budgetary Control Function May Include Evaluating the Difference