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

Explain the stages of the suggestion system, Stages of the suggestion syste...

Stages of the suggestion system 1) Encouragement : in the first stage management should make every effort to help the workers provide suggestion no matter how primitive for th

Chicken and hawk game, Chicken and Hawk (dove game) Two players meet at...

Chicken and Hawk (dove game) Two players meet at a one-lane bridge and each must choose whether to cross first or wait for the other. If both play Tough (T), they crash in the

Current cost acconting, critically examine the current cost accounting for ...

critically examine the current cost accounting for price level changes

Determine the objectives of ratio analysis, Objectives of ratio analysis ...

Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.

Steps of choosing an accounting based performance, Steps of choosing an acc...

Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r

What are the disadvantages of standard costing, Disadvantages of standard c...

Disadvantages of standard costing 1) Difficulty in setting standards: setting of standards in practice extremely difficult and complicated task. First it is not possible to f

Operating cycle method, Operating Cycle Method In this way, total opera...

Operating Cycle Method In this way, total operating expenses for a period are divided via the number of operating cycles in the relevant period to compute the cash need for wor

Calculate the overall profit if the offer is accepted, Question : (a) ...

Question : (a) A company manufactures and sells two products A and B. Presently, it sells 600 units of A and 400 units of B at a price of £24 and £19 respectively. The unit

Show the process of pricing during introduction, Q. Show the process of Pri...

Q. Show the process of Pricing during introduction? Pricing during introduction: in pricing a new product generally two kinds of strategies are suggested viz. a) Skimming p

Net current assets forecasting method, It is the most practical way of esti...

It is the most practical way of estimating working capital needs. In such method, the finance manager gets ready a working capital forecast. While preparing such forecast, firstly

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