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Standard Cost Versus Budgetary Control
Standard Cost Versus Budgetary Control
Both standard costing and budgetary control aim at the objective of maximum efficiency and managerial control. Standard cost and budgetary control have the comparing actual performance with the predetermined standards, analyzing and reporting of variance. The standard costing and budgetary control can be comparing by following dissimilarityStandard costing Standard costing is intensive as it is applied to manufacturing of a product or providing a service. It is determined by classifying recording and allocating expenses to cost unit. It is a part of cost account, a projection of all cost accounts Variances are reveled through different accounts. Budgetary Control Budgetary control is extensive in It deals with the operation of department or business as a whole Budget are prepare for sales, production, cash etc. It is a part of financial account, a projection of all financial account. Control is exercised by taking into account budgets and actual. Variances are not revealed through accounts. Budget can be applied in parts. It is more expensive and broad in nature, as it relates to production, sales, finance etc. Budget can be operated with Standard.
It cannot be applied in parts. It is not expensive because it relates to only elements of cost. This system cannot be operated without budget.