Budgetary Control System Advantages

Steps:

• Identify common advantages of budgetary control: sets financial targets, monitors performance, and enables corrective actions.
• Assume statement 1 covers target-setting for efficiency; statement 2 covers performance evaluation; statement 3 is unrelated or a disadvantage.
• Match choices to correct statements: A includes both valid advantages (1 and 2).
• Verify against standard accounting principles where budgets aid planning and control.

Why A is correct:

• Budgetary control defines targets (1) and compares actuals to budgets for variance analysis (2), per management accounting standards.

Why the others are wrong:

• B omits statement 2's performance monitoring benefit.
• C includes invalid statement 3, not an advantage.
• D excludes statement 1's target-setting role.

Not enough information on exact statements, but A aligns with core advantages.

Final answer: A