|There seems to be a big difference when we understand that standard costing system is concerned with the manufacturing of a product or providing of a service whilst budgetary control system is concerned with the overall policy of the company.But are there any similarities between these two systems.?
Yes, the following are the similarities of budgetary control and standard costing:
It is interesting to note that it is possible for both systems to operate independently but since both systems involve the estimation of costs, most firms often operate both systems together. Budgets set can be used as guides to setting standard costs. Vice versa, the standard costs already determined can be used as aids in the preparation of budgets.