Behavioural Issues Within Budgeting

Behavioural Issues in the Budgetary Control System
Objectives of Budgeting
Through budgeting organisations can provide information for strategic planning and control, these are the two main objectives of the budgetary control system. Management and management accountants must work together and operate a system that achieves these objectives, they do so through a system called variance analysis. Management accountants compare the actual results against the budgets; they then send reports to the management concerning the extent to which budgets are being met. Management can then contro…