What are the disadvantages of incremental budgeting, Managerial Accounting

Assignment Help:

Disadvantages of incremental budgeting

a) Incremental budgeting suppose activities and method of working will continue in the same way

b) No incentive for developing their development new ideas

c) No incentive to decrease costs

d) Encourages spending up to the budget so that the budget is maintained next year

e) The budget may become out of date and no longer relate to the level of activity or type of work being carried out

f)  The priority for resources may have changed as the budget were originally set

g) There may be budgetary slack built into the budget which is never reviewed. Managers might have overestimated their needs in the past in order to obtain a budget which is simpler to work within and which will permit them to achieve favorable results.

 

 


Related Discussions:- What are the disadvantages of incremental budgeting

Vogel''s approximation method (vam), Vogel's Approximation Method (VAM) ...

Vogel's Approximation Method (VAM) This method is a heuristic and usually provides a better starting solution than the two methods described above. However, VAM generally yield

Case study, Susan works in a real estate office that is equipped with up-to...

Susan works in a real estate office that is equipped with up-to-date copiers, scanners, and printers. She is frequently the only employee working in the office in the evenings and

What are the advantages of cost accounting, What are the Advantages of cost...

What are the Advantages of cost accounting: 1. Cost accounting as an aid to management: cost accounting helps the management in carrying out of its functions, planning, organ

Determine the zero bases budgeting according to leonard mere, Determine the...

Determine the Zero bases budgeting According to Leonard mere According to Leonard mere,  ZBB is a technique which complements and links the existing planning budgeting and revi

The roles of management accounting within a company., Review the roles of m...

Review the roles of management accounting within a company. 1.What is the most important role of management accounting? 2.How is that different than financial accounting? 3.What is

Market value-transfer pricing methods, Market value There is universal ag...

Market value There is universal agreement that in competitive markets a market value based transfer price should achieve optimal results. In this circumstance, it can be expected

Select appropriate alternative courses of action, Select Appropriate Altern...

Select Appropriate Alternative Courses of Action In practice, decision-making includes choosing among competing alternative courses of action and choosing the alternative which

Describe budgetary control according to brown and howard, Budgetary Control...

Budgetary Control According to brown and Howard According to brown and Howard," budgetary control is a system of controlling costs which includes the preparation of budget coor

Transportation model-linear programming, Transportation model In the obvi...

Transportation model In the obvious sense, the model deals with the determination of a minimum cost plan for transporting a single commodity from a number of sources (e.g. factor

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