What is the difference between budgetary control and standard costing

I real appreciate once again. Best of luck! Save my name, email, and website in this browser for the next time I comment. Standard costs are predetermined costs fixed according to estimates. Budgetary costs are also estimated in advance and compared to actual costs. Standard costs are designed to control costs and improve efficiency. Budgetary costing also seeks to promote cost control and maximize employee efficiency.

Difference between Standard Costing and Budgetary Control Standard Costing Standard Costing is an accounting technique that helps to calculate material performance, labor, overheads and their variances, to take corrective action. Budgetary Control Budgetary Control is a management function that directs and regulates the activities of an organization in such a way that they reach the desired objectives.

Conclusion Both Standard Costing and Budgetary Control are the methods that provide a reference point for assessing performance and analyzing discrepancy between actual and estimated figures. Bashi Taizya. Sadiq Akbar. Miljan Kovacevic. Arf Ziz. Mohamed Diab. Pritib Kumar. Charlyne Mari Flores. Brian Nyamuzinga. Especialistas Metrologia. Bernardo Javier Villegas Norambuena. George Choo.

Simon Karki. Morgan Longworth. Block 2 L2. Mean and Variance of a Discrete Probability Distribution. Mark Jayson Llorin. Usie Puspitasari. Manuel Boahen. Russell Edits. Popular in Culture. Wan Abohs. Suriaraj Krishnan. D Attitude Kid. In budgetary control, various budgets are prepared and analyzed that are not related to production e. The data used in standard costing are the estimated costs related to different elements of cost. These are data collected and processed based on technical and expert advice.

By contrast, the data used in budgetary control are generally from the immediate past, in which proper adjustments are made keeping in mind possible future changes expected during the budget period. Standards are not fixed for a certain period; instead, they are used relatively for a long time. Standards do not change regularly. They are revised only when major changes have occurred in production processes, technology, or other areas.

Dissimilarly, budgets are prepared for a specific period e. Standard cost determines the target of activities, while budgets disclose the possible maximum limits of the activities.