Advantages-disadvantages-imposed budgets, Managerial Accounting

Assignment Help:

Advantages of Imposed budgets

Advantages:

They increase the probability that the organization strategic plans are incorporated into the planned activities.

  • They enhance the co-ordination between the plans and objectives of divisions.
  • They use senior management consciousness of net resource availability.
  • They decrease the possibility of inputs from inexperience or uniformed lower level employees.
  • They reduce the period of time taken to draw up the budget.


Disadvantages of Imposed budgets:

  • It may result in dissatisfaction, defensiveness and low morale among employees, who must implement the budget.
  • The feeling of team spirit might vanish.
  • The acceptance of organizations goals and objectives could be limited.
  • The sense of the budget as a punitive tool could arise.
  • Unachievable budget for overseas divisions may be imposed on local divisions if consideration is not given to the local operating and political environment.

 


Related Discussions:- Advantages-disadvantages-imposed budgets

How does that relate to the modern epidemic on obesity, Why is corn so freq...

Why is corn so frequently used in typical American foods? In what forms does it take when being part of those foods? How does that relate to the modern epidemic on obesity?

Advantages-disadvantages-imposed budgets, Advantages of Imposed budgets ...

Advantages of Imposed budgets Advantages: They increase the probability that the organization strategic plans are incorporated into the planned activities. They

Explain decision unit - zero base budgeting, Explain decision unit - zero b...

Explain decision unit - zero base budgeting Decision units: an organization is divided among decision units. The manager of the decision unit justifies the relative budget

Cindy, School problem is asking to calculate the work in progress inventory...

School problem is asking to calculate the work in progress inventory for the beginning of a month without providing previous month data.

Implementation of abc analysis, Implementation of ABC analysis The foll...

Implementation of ABC analysis The following steps are included in implementing the ABC analysis: 1. Categorize the items of inventories, establishing the expected use in un

Application areas of linear programming, 5 application areas of linear prog...

5 application areas of linear programing in management accounting

Activity –based techniques, Explains how activity –based techniques can be ...

Explains how activity –based techniques can be used to improve performance

Define the modes of hybrid instrument, Define the modes of Hybrid Instrumen...

Define the modes of Hybrid Instrument? 1. What are a variety of investment risks. Describe them. 2. Define the modes of Hybrid Instruments and clarify their features.

Determine the price determination process, Determine the Price determinatio...

Determine the Price determination process 1) Estimating the demand for the product: the first step in determining the price of a new product is to estimation the anticipated

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