{"id":3876,"date":"2020-03-08T05:25:01","date_gmt":"2020-03-08T05:25:01","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3876"},"modified":"2020-03-08T05:25:01","modified_gmt":"2020-03-08T05:25:01","slug":"difference-between-standard-costing-and-budgetary-control","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/","title":{"rendered":"DIFFERENCE BETWEEN STANDARD COSTING AND BUDGETARY CONTROL"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/#DIFFERENCE_BETWEEN_STANDARD_COSTING_AND_BUDGETARY_CONTROL\" title=\"DIFFERENCE BETWEEN STANDARD COSTING AND\nBUDGETARY CONTROL\">DIFFERENCE BETWEEN STANDARD COSTING AND\nBUDGETARY CONTROL<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/#CONCLUSION\" title=\"CONCLUSION\">CONCLUSION<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"difference-between-standard-costing-and-budgetary-control\"><span class=\"ez-toc-section\" id=\"DIFFERENCE_BETWEEN_STANDARD_COSTING_AND_BUDGETARY_CONTROL\"><\/span><strong>DIFFERENCE BETWEEN STANDARD COSTING AND\nBUDGETARY CONTROL<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The difference between <a href=\"https:\/\/commerceiets.com\/standard-costing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"standard costing (opens in a new tab)\">standard costing<\/a> and <a href=\"https:\/\/commerceiets.com\/budgetary-control\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"budgetary control (opens in a new tab)\">budgetary control<\/a> is as follows: <\/p>\n\n\n\n<p><strong>STANDARD COSTING<\/strong><\/p>\n\n\n\n<p>Standard\ncosting is a cost accounting technique which compares the results of actual\nproduction with the basic standard, as anticipated, in terms of costs so as to\ndetermine the reasons for discrepancies between the anticipated and actual\ncosts.<\/p>\n\n\n\n<p><strong>BUDGETARY CONTROL<\/strong><\/p>\n\n\n\n<p><strong>Budgetary\ncontrol<\/strong>&nbsp;is the process by which budgets\nare prepared for the future period and are compared with the actual performance\nfor finding out variances, if any. The comparison of budgeted figures with\nactual figures will help the management to find out variances and take\ncorrective actions without any delay.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n  <strong>BASIS OF\n  DIFFERENCE<\/strong>\n  <\/td><td>\n  <strong>STANDARD COSTING<\/strong>\n  <\/td><td>\n  <strong>BUDGETARY CONTROL<\/strong>\n  <\/td><\/tr><tr><td>\n  MEANING\n  <\/td><td>\n  The costing method in which evaluation of performance\n  and activity is done by making a comparison between actual and standard\n  costs, is Standard Costing.\n  <\/td><td>\n  Budgetary Control is the system in which budgets are\n  prepared and continuous comparisons are made between the actual and budgeted\n  figures to achieve the desired result.\n  <\/td><\/tr><tr><td>\n  BASIS\n  <\/td><td>\n  Standard costing is determined on the basis of data\n  related to production.\n  <\/td><td>\n  Budgets are prepared on the basis of management&#8217;s plans\n  under budgetary control.\n  <\/td><\/tr><tr><td>\n  RANGE\n  <\/td><td>\n  It is limited to cost details.\n  <\/td><td>\n  It includes cost and financial data.\n  <\/td><\/tr><tr><td>\n  INTERDEPENDENCE\n  <\/td><td>\n  Budgeting is necessary for standard costing.\n  <\/td><td>\n  Standard costing is not necessary for adopting\n  budgetary control.\n  <\/td><\/tr><tr><td>\n  CONCEPT\n  <\/td><td>\n  It is a Unit Concept.\n  <\/td><td>\n  It is a Total Concept in itself.\n  <\/td><\/tr><tr><td>\n  VARIANCES\n  <\/td><td>\n  It deals with the variances of elements of cost i.e.\n  material, labour, overhead and sales separately.\n  <\/td><td>\n  &nbsp;It deals with total variances\n  only.\n  <\/td><\/tr><tr><td>\n  INCOME\/ EXPENSES\n  <\/td><td>\n  Standards are set for expenses only.\n  <\/td><td>\n  Budgets can be prepared for incomes also.\n  <\/td><\/tr><tr><td>\n  SCOPE\n  <\/td><td>\n  It is Narrow concept.\n  <\/td><td>\n  It is a Wider concept than standard costing.\n  <\/td><\/tr><tr><td>\n  REPORTING OF VARIANCES\n  <\/td><td>\n  It reports the variances.\n  <\/td><td>\n  It does not report the variances.\n  <\/td><\/tr><tr><td>\n  FORECASTING\n  <\/td><td>\n  It cannot be used for forecasting.\n  <\/td><td>\n  It can be used for forecasting purpose also.\n  <\/td><\/tr><tr><td>\n  PROJECTION\n  <\/td><td>\n  It is the projection of cost accounts.\n  <\/td><td>\n  It is projection of financial accounts.\n  <\/td><\/tr><tr><td>\n  STANDARDIZATION OF PRODUCTS\n  <\/td><td>\n  It requires standardization of products.\n  <\/td><td>\n  It does not necessarily requires standardization of\n  products.\n  <\/td><\/tr><tr><td>\n  EFFECT OF TEMPORARY CHANGES IN CONDITIONS\n  <\/td><td>\n  The short term changes will not influence the standard\n  costs.\n  <\/td><td>\n  The short term changes will be shown in the budgeted\n  costs.\n  <\/td><\/tr><tr><td>\n  COMPARISON\n  <\/td><td>\n  It compares Actual costs and standard cost of actual\n  output.\n  <\/td><td>\n  It compares Actual figures and budgeted figures.\n  <\/td><\/tr><tr><td>\n  APPLICABILITY\n  <\/td><td>\n  It is applicable in Manufacturing concerns only.\n  <\/td><td>\n  It is applicable in All business concerns.\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"conclusion\"><span class=\"ez-toc-section\" id=\"CONCLUSION\"><\/span><strong>CONCLUSION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both Standard Costing and Budgetary Control are the techniques which provide a yardstick to judge the performance and analyze disagreement of the actual and estimated figures. Budgetary Control makes side by side comparisons, and that is why periodic revisions are made in the budgets, and that is why there is no need for reporting the variances, which is absent in Standard costing.<\/p>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>DIFFERENCE BETWEEN STANDARD COSTING AND BUDGETARY CONTROL The difference between standard costing and budgetary control is as follows: STANDARD COSTING Standard costing is a cost accounting technique which compares the results of actual production with the basic standard, as anticipated, in terms of costs so as to determine the reasons for discrepancies between the anticipated&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;DIFFERENCE BETWEEN STANDARD COSTING AND BUDGETARY CONTROL&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3879,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187,56],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3876"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3876"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3879"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}