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
Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

what is the meaning or definition of cost objective?

Consider as Illustration. Profit and loss account of TIL demonstrates, that, operations have given gross addition of Rs. 360 million to funds throughout the period. These funds sho

Typical Causes of Labour Variances Labour Rate Variances a) Higher rates being paid than planned because of wage raise awards. b) Lower or Higher grade of work

Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is disconti

Andrew Industries is contemplating issuing a 30-year bond with a coupon rate of 7% (annual coupon payments) and a face value of $1000. Andrew believes it can get a rating of A from

what are the legal distinctions between a business combination, a merger, and a consolidation.

Questions 8-10 rely on the following data. FrontGrade Systems allocates manufacturing over- head based on machine hours. Each connector should require 11 machine hours. According t

(a) Describe briefly how the following are used in the accounting for labour: (i)   time sheets (ii)   job cards. (b) The following details relate to the labour in a produ

Outdoors R Us owns several membership-based campground resorts throughout the Southwest. The company sells campground sites to new members, usually during a get-acquainted visit an