The weaknesses of an incremental budgeting system, Cost Accounting

Traditional budgeting  systems are  incremental  in nature and  tend  to  focus on  cost  centres.  Activity-based  budgeting  links  business  planning  to  the  budgeting  process  with  a  view  to searching the most cost-effective means of achieving objectives.  
Requirements:

(a)  Describe the weaknesses of an incremental budgeting system.  
(b)  Explain the main  features of an activity-based budgeting system and comment on the benefits claimed for its use.  

Posted Date: 3/18/2013 6:54:23 AM | Location : United States







Related Discussions:- The weaknesses of an incremental budgeting system, Assignment Help, Ask Question on The weaknesses of an incremental budgeting system, Get Answer, Expert's Help, The weaknesses of an incremental budgeting system Discussions

Write discussion on The weaknesses of an incremental budgeting system
Your posts are moderated
Related Questions
Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recom

Occurrence of Overhead Variances Overhead variances arise mainly because of the conventions of the overheads absorption process. The overhead absorption rates employed in this

Where the liabilities are identified but the amounts cannot be precisely found, we estimate the liability and give for it as a liability. A common illustration is income tax payabl

Manson Manufacturing applies manufacturing overhead at a rate of $30 per direct labour hour a)when during the year was this rate computed b)Describe briefly how this rate was

Factory Overhead Budget This budget represents the forecasts of each the production variable and fixed and semi-variable overheads to be incurred throughout the budget period.

Is there a way to figure out labor cost and factory inventory when no direct information regarding them is available.

Effects of differential cost analysis in decision making

Alameda Service center just purchased an automobile hoist for $ 14000. The hoist has a 6 year lifeand an estimated salvage value of $1481. Installation costs were $3020, and freigh

Illustration of Overhead Variance Analysis Again for intentions of our demonstrations in overhead variance analysis, we will suppose the given basic data for company in the pr

Walter manufactures a silicone paste wax that goes through three processing departments: cracking, blending, and packing. All raw materials are introduced at the start of work in t