What are the main purposes of Budgetary Controls and Standard Costing?

The main purpose of budgetary control is

1. Planning,

2. Coordination,

3. Responsibility and Performance evaluation.

A sound and efficient organization is essential for effective budgetary control.

Standard costing is a technique that uses standard for cost and revenue for the purpose of control through variance analysis. The purposes of standard costing are mainly :

(a) Measuring Performance

(b) Controlling and Reducing Costs,

(c) Valuing Inventory and

(d) Fixing Selling Price.

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What are budgets & its benefits ?

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