Management and budgetary control is the system of proactively controlling performance against predetermined targets at all levels of the organisation, which may include projects, people, activities, processes, sales volumes and revenues, resource quantities, operating costs and expenses, assets, liabilities and cash flows, as well as other non-financial measures.

Having great cost-accounting systems and processes in place provides a solid foundation for driving and holding costs down. As part of this, systems of management and budgetary control help organisations evaluate performance against targets and take improvement actions. They provide a means for accountability and control to be decentralised, so that performance can be proactively managed by those managers closest to the execution of planned activity.

Whether a business uses budgetary control, beyond budgeting techniques or some other system, the fundamental objective is always the same: to manage performance against targets agreed.


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Activity-Based Budgeting (ABB)

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Beyond Budgeting

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