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Q. Show the behavioural aspects when implementing budgets?
The following behavioural aspects could arise when implementing budgets
- Budgets seen as a 'penny pinching' exercise rather than for cost control.
- Employees become united, finding excuses for not meeting targets.
- Lack of support from management may cause low motivation or morale.
- Budgetary slack or 'budget padding' e.g. wasteful spending introduced within cost estimates submitted by management or staff.
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Q. Show the example on residual income? Division A makes and sells a single product and is assessed by the residual income it earns, the head office of the group uses a 10% cos
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Two useful approaches to assess feasibility in financial terms are: Ans) Funds flow and break-even examines
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