Budgetary accountability

Budgetary accountability is the linkage between the numbers in an approved budget and the managers who are responsible for ensuring that the budget is achieved. Thus, if a subsequent budget-to-actual comparison is unfavorable, this reflects poorly on the performance of the person to whom that budget line item was assigned.

Without budgetary accountability, it is unlikely that a budget will be achieved, since no one is responsible for it.

Related Courses

Capital Budgeting