Which of the following closely relates to budgetary control?

Budgetary control involves the continuous process of monitoring and comparing the budgets that have been set for an organization against the actual financial performance. This practice is crucial because it allows management to identify variances between expected outcomes and actual results, enabling them to take corrective actions if necessary. By closely tracking these comparisons, organizations can assess their financial health, evaluate operational efficiency, and ensure resources are being used effectively in line with the predetermined budget.

While forecasting future revenue streams, establishing fixed capital budgets, and reducing costs across departments are important aspects of financial planning and management, they do not embody the core essence of budgetary control, which is primarily focused on the ongoing oversight and adjustment of budgets based on real-time performance data.