Background to the StudyPlanning and control are major activities of management in all organization and budgets are central to the process of planning and control. Budgeting and budgetary control both at management and operational level look at the future lay down what had to be achieved while control checks whether or not the plans are realized and put into effect corrective measure where deviation or short or short fall is occurring-Budgeting control is not a new technique. It has a profit as the motivating force to known how performance increases. Budgetary control is therefore the system of management control and accounting in which all the operations are forecasted and planned in advances to the extent possible and the actual result compared with the forecasted and planned ones.In brief it is a system to assist management in the allocation of responsibility and authority, to provide it with aid for making, estimating and planning for the future and to facilitate the analysis of the between estimated and actual performance.In order that budgetary control may function effectively, it is necessary that the concern should develop proper basis of measurement or standard with which to evaluate the efficiency of operations a system of standard costing.Beside this, the organization of the concern should be so integrated that all lines of authority and responsibility are laid, allocated and defined. This is essential since the system of budgetary control postulate separation of functions and division of responsibilities and thus requires that the organization shall be in such be planned in such a manner that everyone from the managing director down to the shop foreman will have his duties properly defined.Budgetary control is an important aspect of financial planning and control. If properly applied it will help in keeping operation and production of good and service in line with plans. When establishing budgets, standard must be used and it is this standard that will serve as a yard stick for measuring actual result. This in effect means that budgetary control system is operated simultaneously with system of standard costing because both systems are inter-related.It is important that budgetary control reports are consistent with the assigned responsibility of each level of the organization and that a budget holder is only held responsible for their incurrence. Thus, if responsibility accounting is to be controllable and uncontrollable. Responsibility Accounting is a system of accounting in which cost and revenue are analyzed in accordance with areas of personal responsibility accounting. Once the plans for the department have been agreed and embodied in a budget, the budgetary control process begins.