Which of the following statement is incorrect regarding techniques of controlling?
Answer & explanation
Correct answer: option 4
The correct answer is option (4)- Budgetary control is a technique in which all operations are not planned.
'Budgetary control is a technique in which all operations are not planned.' is incorrect as operations are planned and controlled.
Budget control is a technique that involves planning and controlling an organization's operations through budgets. In budgetary control, all operations are indeed planned and budgeted, allowing for the comparison of actual performance against the budgeted figures to identify variances and take corrective actions. Budgetary control involves the creation and management of budgets. It is a quantitative statement that outlines financial plans for a specific future period, helping in controlling and monitoring expenses.