Imposed budgets- budgetary styles, Managerial Accounting

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Imposed Budgets

In this approach to budgeting, top management prepares a budget with little or no help from operating personnel, which is then obligatory upon the employees who have to work to the budgeted figures.

Imposed budgets are effective in the following conditions:

In a newly formed organization
In a very small business
During periods of economic hardship
Whenever operational managers lack budgeting proficiencies
When the organization’s different units require precise co-ordination

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