Limitations of budgetary control, Financial Management

Assignment Help:

LIMITATIONS OF BUDGETARY CONTROL

1. It involves predicting the future which is not certain.

2. Market is continuously and dynamically evolving.  Hence budgets based on past data may not be relevant.

3. Over reliance on budget will result in complacence on the part of the employees.

4. Actually, gaining full co-ordination of all the employees may be difficult.

5. There may be conflict between many departments.

6. Preparation of a budget is so difficult.

7. Resistance in accepting also will not result in achieving the set goals.

8. It is very expensive.


Related Discussions:- Limitations of budgetary control

Misconceptions of securitization, There are some misconceptions about...

There are some misconceptions about securitization: Poor quality originators end up in securitizing their assets. A bank's best mortgage

Advantage and disadvantage of aggressive working capital, What are the adva...

What are the advantages and disadvantages of the aggressive working capital financing approach? An aggressive working capital financing approach generally results in a lower cost

Define multinational corporations (mncs), What are multinational corporatio...

What are multinational corporations (MNCs) and what economic roles do they play? A multinational corporation (MNC) can be described as a business firm incorporated in one count

Corporate governance, CORPORATE GOVERNANCE Corporate governance can be ...

CORPORATE GOVERNANCE Corporate governance can be stated in different ways, for example: The Private Sector Corporate Governance Trust (PSCGT) defines that corporate governan

Call schedule, It shows the date and corresponding prices at which th...

It shows the date and corresponding prices at which the issuer can call back bonds. The issuer pays higher premium over the par value of the bond if the bond is c

Risk of the complete portfolio, (a) Presume we have a portfolio of n name...

(a) Presume we have a portfolio of n names with some default correlation ρ . The risk of the complete portfolio moves according to the change in default correlation. Alternative

What is the significance of working capital, Q. What is the significance of...

Q. What is the significance of Working Capital? Meaning of Working Capital: - Working capital management is an significant aspect of financial management. In business money is

MIS, evaluation and maintenance of MIS

evaluation and maintenance of MIS

Define the meaning of overtrading, Define the meaning of Overtrading Wh...

Define the meaning of Overtrading When  a  company  is  trading  at  a  very  fast  pace,  it  would be  generating  sales  on  credit  with  speed, so have a large volume of t

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