Disadvantages of participatory budgets , Managerial Accounting

Assignment Help:

Disadvantages of participatory budgets

 

  1. They consume more time and therefore are more expensive
  2. The advantage of management participation may be negated by failure to implement the budget by senior management leading to dissatisfaction similar to that experienced with imposed budgets.
  3. Such budgets may cause managers to introduce budgetary slacks ( A budgetary slack is a margin set between what can be achieved and what managers state will be achieved)
  4. Managers may be unqualified to participate and therefore the budgets may be unachievable
  5. Participatory budgets may support empire building by sub-ordinates.
  6. An earlier start to the budgeting process maybe required when there is uncertainty about the future.

 


Related Discussions:- Disadvantages of participatory budgets

Budgets and human behaviour, what are the most effective management styles ...

what are the most effective management styles in an organisation

Cost concept, Cost concept . techniques of costing . absorption costing

Cost concept . techniques of costing . absorption costing

Collection effort, The collection policy of a firm is intend at timely coll...

The collection policy of a firm is intend at timely collection of overdue amount and comprises of the subsequent. a.      Monitoring the state of debtors (account receivable)

Jit and management accounting , JIT and Management Accounting Manageme...

JIT and Management Accounting Management accountants in many organizations have been criticized because of their failure to change their managing accounting system to reflect

Calculate earnings per share, EMERALD LTD is planning an expansion programm...

EMERALD LTD is planning an expansion programme,which will require Rs 30 crores & can be funded through one of the following 1.issue further equity share of Rs 100 each at par.

Strategic plan, How to write introduction on strategy plan

How to write introduction on strategy plan

Transfer pricing, Transfer pricing sometimes entails using different transf...

Transfer pricing sometimes entails using different transfer pricing systems: one for tax purposes, and one for internal decision making, even though maintaining two systems can be

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd