Participative budgets- budgetary styles, Managerial Accounting

Participative Budgets

In this approach to budgeting, budgets are developed by lower level managers who then submit them to their superiors. The budgets depend on the lower level manager perception of what is achievable and the associated necessary resources. The degree to which lower level managers are allowed to participate in the budgeting process depends on:

(a) Senior manager’s awareness of participatory budgeting advantages.
(b) Their agreement with those advantages.

Participatory budgets are effective in the following areas:

  1. In a well established organization
  2. In a very large business
  3. During periods of economic boom
  4. Whenever operational managers have strong budgeting proficiencies
  5. When the organization’s different units act autonomously
Posted Date: 12/7/2012 8:04:44 AM | Location : United States







Related Discussions:- Participative budgets- budgetary styles, Assignment Help, Ask Question on Participative budgets- budgetary styles, Get Answer, Expert's Help, Participative budgets- budgetary styles Discussions

Write discussion on Participative budgets- budgetary styles
Your posts are moderated
Related Questions
BUDGETARY CONTROLS Control in a business is the process of guiding organization into viable patterns of activity in an environment. The main purpose of a control system is to m

Types of Simulation 1) Operational Gaining Method: This refers to those situations involving conflict of interest among players or decision makers within the framework o

Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its

What is traditional costing In traditional costing overheads are first related to cost centers (production and service centres) and then to cost object, i.e. production. ABC o

solutions for (POS) slow printing of sales tickets and unpredictable action of cash drawers. when credit approvals delayed the checkout process or when the computer was down, thus

What is Standard costing Standard cost is a predetermined cost. It is a determination in advance of production of what should be the cost. When standard costs are used for the

The Work in Process account for Monty's Company contained the following entries: Work in Process Account Debit of $40,000 for direct raw materials Debit of $60,000 for direct labor

Computing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes CD p

Cost comprise impact Some of the policy choices which tend to have the maximum impact on cost comprise: Product performance, configuration, and characteristics Mix and

Determine the Inputted cost It is hypothetical cost required to be considered to make costs comparable. It is the owner of the factory charges rent of the factory to the cost