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Topic: Budgeting The modern dynamic business environment has been described as a "buyer market" in which companies must react to the rapidly changing characteristics of the market and needs of customers.
Many managers have critic traditional forms of budgeting for being too restrictive and for being of little use for performance management and control.
Explain how the principles of "Beyond Budgeting" promote a cultural framework that is suitable and relevant for the current business environment.
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A typical budget allocates funds for payroll, general expenses, equipment, services, taxes and miscellaneous expenditures. Careful decisions have to be made regarding the amount of money spent each month on specific items. For instance, a manager may have to postpone purchasing a new piece of equipment that has the potential to help the company produce more in order to make payroll. Payroll is a budgetary expense that cannot be spent arbitrarily or sacrificed
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a demonstrate the influence of environmental and behavioural factors on structure corporate size and strategy.b
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