What is the primary goal of budgetary control in management?

The primary goal of budgetary control in management is to verify accomplishments against budget data. This process involves comparing the actual financial performance of an organization to the budgeted figures to assess how well the organization is performing in relation to its financial plans.

Budgetary control enables managers to identify variances, which are the differences between budgeted and actual figures. By analyzing these variances, managers can take necessary corrective actions to address any discrepancies, enhancing overall financial performance. This oversight allows for better resource allocation, informed decision-making, and can guide future budget preparation based on past performance.

Other goals, such as maximizing revenue and minimizing costs, are important in their own right but serve more as strategies to improve financial performance rather than the central objective of budgetary control itself. Enhancing employee satisfaction, while crucial for organizational success, is focused more on human resource management rather than directly tied to the financial oversight that budgetary control provides.