Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
What are the Disadvantages of budgetary control
1) Uncertain future: the budgets are prepared for the future period. Despite best estimates made for the predictions may not always come true. The future is always uncertain and the situation which is presumed to prevail in future may change. The change in future condition upsets the budgets which have to be prepared on the basis of certain assumptions. The future uncertainties reduce the utility of budgetary reduce the utility of budgetary control system.
2) Budgetary revisions required: budgets are prepared on the assumption that certain condition will prevail. Because of future uncertainties assumed condition may not prevail necessitating the revision of budgetary targets. The frequent revision of targets will reduce the value of begets and revisions involve huge expenditures too.
3) Discourages efficient persons: under budgetary control system the targets are given to every person in the organization. The common tendency of people is to achieve the targets only. There may be some efficient persons who can exceed the targets but they will also feel contented by reaching the targets. So budgets may serve as constraints on managerial initiatives.
4) Problem of co ordination: the success of budgetary control depends upon the co ordination among different departments. The performance of one department affects the results of other departments. To overcome the problem of co ordination a budgetary officer is needed every concern cannot afford to appoint a budgetary officer. The lack of co ordination among different department results in poor performance.
5) Conflict among different departments: budgetary control may lead to conflicts among functional departments. Every department head worries for his department goals without thinking of business goal. Every department tries to get maximum allocations of funds and this raises a among different departments.
6) Depends upon support of top management: budgetary control system depends upon the support of top management. The management should be enthusiastic for the success of this system and should give full support for it. If at any time there is a lack of support from top management then this system will collapse.
One of the main deities of the financial manager is to keep a sound liquidity position for the firm hence the dues are settled as and while they mature. Separately from this the fi
How many forms of break even charts?
Question: (a) For a business annual sales are Rs 50,000 and variable expenses are Rs 35,000 and fixed expenses are Rs 25,000. The owner wants to earn at least Rs 5,000 as pro
Improvement in product design may result in cost reduction illustrated below: 1) Material cost : change in design of the product may result in saving in material cost. Economi
Sources of Working Capital Finance Working capital finance may be classified in the subsequent: Spontaneous Source of Finance Finance that naturally arises in
The assignment model Consider the situation of assigning m jobs (or workers) to n machines. A job i(= 1,2,3 ...m) when assigned to machine j(= 1,2,3 ...n) acquires a cost Cij.
Characteristics of cost reduction 1) Cost reduction must be real : said through increase in productivity change in product design improvement in technology etc. 2) Cost r
Definition of Activities based costing Activity based costing is a system that focuses on activities as the fundamental cost objects and uses the costs of these activities as b
Please help me with these problems Merry -Go -Around (MGR) a clothing retailer located primarily in shopping malls, was founded in 1968. By the early 1990s, the company had gon
Queuing problems There are two main approaches to queuing problems: • simulation • queuing theory formula Where simple situations apply, queuing theory should be used
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd