The most widely used financial control is the budget. Budget preparation is primarily a planning function. However, applying, supervising, and living within a budget are part of the controlling function. Supervisors should help prepare their departmental budgets, regardless of whether the enterprise practices traditional or zero-base budgeting. Virtually all budgets need some built-in flexibility to allow for adjustments, when necessary.

When significant deviations from the budget occur, the supervisor must investigate and take whatever actions are appropriate to bring expenditures back in line.? K-526