The main objective of budgetary control is to be aware of how far the budget is being followed or is realistic. This is done by comparing the actual situation - spending, business results etc - with the budget predictions. You can get a full overview of the objectives, advantages and disadvantages of budgetary control here.
Budgetary control in business is like a map if you are travelling. You decide where you want to get to and plot a route that will get you there in the best way. On the journey you can compare your actual progress with the map. In business you decide what you want your business to have achieved in different time frames, decide what you have got to do to get there and cost it Then, on a regular basis, you compare your actual progress with where you wanted to be and apply the policies necessary to keep you on plan. Fixing and controlling budgets is an important part of such planning but is not the whole story. There are many components to a plan which includes ensuring supplies, transport, personnel, the right skills and marketing to name some. You may well have to modify your plans in the light of reality. Mindlessly sticking to budgets in the light of actual experience can destroy the plan. The value of the process is aiding you to stay on track to meet your planned objectives and giving you early warning of deviation and its causes. It probably will not tell you what you need to do but a properly drawn up model of your plan will allow you to test different scenarios i.e "what ifs?"
The advantages of using a standard costing are: Extremely important for using budgetary control Standard costing is useful for controlling the systems so they could improve upon positives variances and eliminate others.
