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

Problem 18.4A Process Costing with No Beginning or E, Ask question Toll Hou...

Ask question Toll House makes chocolate chip cookies. The cookies pass through three production processes: mixing the cookie dough, baking, and packaging. Toll House uses process c

Arrival rates-service rates-traffic intensity, Arrival Rates, Service Rates...

Arrival Rates, Service Rates, and Traffic Intensity The (average) arrival rate is the rate of arrival of customers at a queue, and is often denoted by x. If 10 customers arr

Provision for contingencies, After determining the amount of working capita...

After determining the amount of working capital as in above, a specific amount say 5 percent or 10 percent may be added to cover contingencies. This is to be noted that facts depen

Compute the expected return and risk of a portfolio, Compute the Expected R...

Compute the Expected Return and Risk of a Portfolio? The subsequent data are presented to you as a portfolio manager Security Expected Return

Calculate the net increase or decrease in monthly profit, Painter Ltd, whic...

Painter Ltd, which manufactures and sells a single product, is currently producing and selling 102,000 units per month, which represents 85% of its full capacity. Total monthly cos

Determine the functions of management accounting, Determine the Functions o...

Determine the Functions of management accounting: 1. Planning and forecasting: management fixes various targets to be achieved by the business in near future. Planning and fo

How much to order, How much to order Supposing the estimated annual usa...

How much to order Supposing the estimated annual usage of a component by Machinery Ltd is 20,000 units.  Usage is even throughout the year and only one order per annum is place

What are the advantages of break even charts, What are the Advantages or us...

What are the Advantages or uses of break even charts Computation of break even point or presentation of cost volume and profit relationship by way of break even charts has the

Standerd costing, Ask queThe standard cost of chemical mixture ~ PQ’ is as ...

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

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