Which two methods are commonly used for budgetary control?

Variance analysis and performance measurement are two foundational methods used for budgetary control due to their effectiveness in tracking and managing financial performance.

Variance analysis involves comparing actual financial results to budgeted figures, enabling organizations to identify discrepancies and understand the reasons behind variances. This process is critical for making informed operational adjustments, as it highlights areas where expenditures exceed budgets or where income may not be meeting expectations. By analyzing these variances, managers can take corrective action to align actual performance with budgetary objectives.

Performance measurement, on the other hand, involves assessing how well an organization is achieving its financial goals and operational efficiency. This method often incorporates various metrics and key performance indicators to evaluate success against strategic objectives. By regularly measuring performance, organizations can ensure that they are on track to meet their financial targets and can make necessary adjustments to strategies and operations as needed.

In contrast, the other options do not combine these effective methods for budgetary control with the same focus and depth. While stakeholder surveys and market analysis can provide valuable insights, they are not specifically geared towards the direct monitoring and management of budgets. Cost allocation and financial forecasting are vital processes but do not encompass the performance tracking aspect essential for budgetary control as effectively as variance analysis and performance measurement do.