It is a fact that budgetary control can only serve to enhance the level of overall organizational control by acting as controlling and planning system, when it is done and implemented properly. In order to properly implement budgetary control many types of budget are prepared by the companies (Shields& Shields, 1998). Management chooses among all the types of budgeting keeping in view the requirements of the business. Few of these are as follows:
Top down budgeting: In this kind of budgetary mechanism, manager dispatches the budget made by the department to all the subordinates, so that they may act upon the budget to achieve the desired outcomes.
It refers to the type of budget that is made from lower level departments and then it is sent to the upper heads of the organization. As the figures move up in the hierarchy these are adjusted and modifies by the authorities with the help of information that is possessed by these authorities.
In zero based budgeting mangers are required to formulate each new budget by providing a justification of the projected allocation against its input to departmental and organizational objectives.
Budgetary control also enables the management to have a look on the activities of marketing department. The actions of marketing department are extremely important to determine the performance of the organization. Both the short run ad long run performance of the business depend on the plans and campaigns launched by the marketing department and these advertisement campaigns have a considerable share in the allocation of funds at the time of budget preparation (Otley, 1999). A huge fund is attributed to marketing department so that this department may take some actions to ensure the increased sales of the company which will in turn generate additional profits for the organization. Performance can only be increased if the marketing budget is spent in a wise way.Therefore, budgetary control is associated with the marketing control, hence overall organizational control. Marketing control is based on market research, test marketing and marketing statistics.