Advantages of Budgetary Control:

★ It is a powerful tool for the purpose of cost control and profit maximization.

★ It enables the management to maximize the use of available resources in a most profitable manner.

★ As a budgetary control is based on a budget which sets the plan of action in respect of various functional areas of operations. Thus, it acts as a means of declaration of the policies of the management.

★ It acts as means of communication.

★ It acts as a means of improving co-ordination by developing team spirit in the organisation.

★ It enables the management to take proper actions in regard to the adverse variations in the actual and budgeted results.

★ It enables the delegation of authority.

★ It is a powerful tool with the management for performance appraisal.

★ It also provides a basis for the establishment of the incentive systems