Limitations of budgetary control, Financial Management

LIMITATIONS OF BUDGETARY CONTROL

1. It involves predicting the future which is not certain.

2. Market is continuously and dynamically evolving.  Hence budgets based on past data may not be relevant.

3. Over reliance on budget will result in complacence on the part of the employees.

4. Actually, gaining full co-ordination of all the employees may be difficult.

5. There may be conflict between many departments.

6. Preparation of a budget is so difficult.

7. Resistance in accepting also will not result in achieving the set goals.

8. It is very expensive.

Posted Date: 10/15/2012 8:10:03 AM | Location : United States







Related Discussions:- Limitations of budgetary control, Assignment Help, Ask Question on Limitations of budgetary control, Get Answer, Expert's Help, Limitations of budgetary control Discussions

Write discussion on Limitations of budgetary control
Your posts are moderated
Related Questions
A proforma cost sheet of a company provides the following data:   RO Cost (per unit)      Raw materials 52

Do you provide plaigerism free solutions to questions or do you only tutor?

Liquidity risk tends to change as and when there exists a change in the spread between the bid and the ask price. Market liquidity change is a matter of concern f

Suppose that Harry and Steven make their living selling contraband at opposite ends of a town that is 1 mile long. Because it's a crowded city, the citizens use taxi-cabs for trans

The Rise of Derivative Market: In the 1980s, the process of liberalization and deregulation of the financial markets gained momentum when the British and American leadership l

TYPES OF WORKING CAPITAL Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital

The Pennington Corporation issued a new series of bonds on January 1, 1979. The bonds were sold at par ($1,000), have a 12 percent coupon, and mature in 30 years, on December 31,

Predicting Cross-Sectional Returns If the market is assumed to be efficient, all securities should lie along the security market line that relates the expected rate of return t

Individual Project Due Date: Mon, 06/08/15 Points Possible: 100 Deliverable Length: 8-10 slides with speaker notes Description: You are the CFO of a 400-bed hospital in Texas

Q. Determine marginal tax rate? Ans. Henkel does not carry debt beyond five years. To determine the cost of debt: a. For Henkel AG, which Treasury rate at which maturit