Advantages-disadvantages-imposed budgets, Managerial Accounting

Advantages of Imposed budgets

Advantages:

They increase the probability that the organization strategic plans are incorporated into the planned activities.

  • They enhance the co-ordination between the plans and objectives of divisions.
  • They use senior management consciousness of net resource availability.
  • They decrease the possibility of inputs from inexperience or uniformed lower level employees.
  • They reduce the period of time taken to draw up the budget.


Disadvantages of Imposed budgets:

  • It may result in dissatisfaction, defensiveness and low morale among employees, who must implement the budget.
  • The feeling of team spirit might vanish.
  • The acceptance of organizations goals and objectives could be limited.
  • The sense of the budget as a punitive tool could arise.
  • Unachievable budget for overseas divisions may be imposed on local divisions if consideration is not given to the local operating and political environment.

 

Posted Date: 12/7/2012 8:03:14 AM | Location : United States







Related Discussions:- Advantages-disadvantages-imposed budgets, Assignment Help, Ask Question on Advantages-disadvantages-imposed budgets, Get Answer, Expert's Help, Advantages-disadvantages-imposed budgets Discussions

Write discussion on Advantages-disadvantages-imposed budgets
Your posts are moderated
Related Questions
ABM(Activity based management): ABM system is primary source of information for AM as a part of ABM identify value added and non-value added activity and management are also to

The Role of Computers in Simulation Computers can be used to: 1) To generate the random numbers 2) To simulate thousands of trials. This is done extremely fast, accuratel


Service time-probability distribution curve A common example is that service times follow an exponential probability distribution i.e. y=e -x Service channels - t

I am to write thesis on Budget and Budgetary Contro. Can you please help me with contents and notes?


Define role of Management Accountant The main role of management accountant is defined below. Planner e.g. budgeting Information provider e.g. operating statement

Incremental budgeting This is used to describe an incremental cost approach to budgeting where the next period budget is based on the current year’s results plus an extra amou

Critique of Performance Measurement This section brings together material from preceding data in this lesson in order to provide a critical appraisal of performance measurement

MATERIAL CONTROL It is said that "any fool can sell"—it is buying at the right price that is more critical to the achievement of a satisfactory return on capital employed.  Buy