Limitations of budgetary control, Financial Management

Assignment Help:

LIMITATIONS OF BUDGETARY CONTROL

1. It involves predicting the future which is not certain.

2. Market is continuously and dynamically evolving.  Hence budgets based on past data may not be relevant.

3. Over reliance on budget will result in complacence on the part of the employees.

4. Actually, gaining full co-ordination of all the employees may be difficult.

5. There may be conflict between many departments.

6. Preparation of a budget is so difficult.

7. Resistance in accepting also will not result in achieving the set goals.

8. It is very expensive.


Related Discussions:- Limitations of budgetary control

The japanese pension fund system, The Japanese Pension Fund System The J...

The Japanese Pension Fund System The Japanese pension system is a multi-pillar system. Public and private pension schemes are the two important pillars. The first tier is the Ba

Explain how price serve as a signal to resource owners, How does price serv...

How does price serve as a signal to resource owners? While consumers decide that a good or service is much more appealing than before, demand rises.  This makes a shortage at the

Example of securitization, The process of securitization can best be ...

The process of securitization can best be understood by taking the following example. Assume that there exists an NBFC which has hire purchase as its major busine

Calendar studies, Calendar Studies These attempted to predict rates of ...

Calendar Studies These attempted to predict rates of return during a calendar year and examine if there is any particular observable pattern in the rates of return on the stock

Liquidity risk, what role do core deposits play in predicting the probabili...

what role do core deposits play in predicting the probability distribution of net deposit drains

Define how can estimate expected incremental cash flows, How do we estimate...

How do we estimate expected incremental cash flows for a proposed capital budgeting project? We calculate expected incremental cash flows for a planned project by estimating the

Determine the concept of dividend yield, Dividend yield Dividend yield ...

Dividend yield Dividend yield = (Dividend per share/Market share price) x 100% Dividend yield is the cash return on the share (not whole return which is cash dividend and ca

Calculation of variances, a) Distinguish among standard costing and budgeta...

a) Distinguish among standard costing and budgetary control.  (b)"Calculation of variances in standard costing is not an end in itself, but a means  to an end" Brief discussion

Financial plan , As starting a new business, is it better to leas or buy th...

As starting a new business, is it better to leas or buy the business venture?. what factors should be considered. (Knowing that the equity finance is $150,000 and $250,000 could be

Method to find seasonal variation in time series, Method to Identify the Co...

Method to Identify the Component of Seasonal Variation in a Time Series This technique is called as Ratio to Moving Average Method. In this technique, we construct an index wh

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