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
Benjamin Tang currently has holdings in the following three companies:                                                                             E(R)                      σ

Calculate the expected rate of return and risk of return

a) Definitions of EST and LFT needed in order to explain the differentiation between the terms. The EST of each activity will depend on the LFT of all preceding activities. b) S

Question : (a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Proj

Why do we need to learn finance The questions that you may thinking about right now are "Why do we need to learnfinance?  Shall we not leave it to people who are going to speci

Explain in detail about the Cost of Capital Every type of capital used by the firm (preference shares, debt and equity) must be incorporated into the cost of capital, with rela

Q. Computation of overall Cost of Capital? Computation of Value of the Firm (V) & Overall Cost of Capital when debt is lowered to Rs, 1, 00,000 When the debt is lowered to R

I just purchased a stock that would pay the dividends of the first four years as D1 = $0.65, D2 = $0.74, D3 = $0.79, D4 = $0.84. I also told that the dividends would grow continual

What remains of an organization revenue after all expenses and taxes have been paid.

ADVANTAGES OF BUDGETARY CONTROL 1. Profits are maximizes. 2. It makes easy the controlling of activities. 3. Effective co-ordination is made achievable. 4. Executive