Budgeting is essential to businesses, but it is not that simple to implement. What are some challenges and weaknesses that a firm may find in the budgeting process?
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Budgeting is essential to businesses, but it is not that simple to implement. What are some challenges and weaknesses that a firm may find in the budgeting process?
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- If management is being evaluated on their ability to manage a budget, what can they do to decrease cash outflow?What are some challenges and weaknesses that a firm may find in the budgeting process?1(a) "Accounting plays a relatively unimportant role in budgeting." Do you agree? Explain. (b) What responsibilities does management have in budgeting? 2)What is participative budgeting? What are its potential benefits? What are its potential disadvantages? 3)What is budgetary slack? What incentive do managers have to create budgetary slack?
- How can an organization help to reduce the problems caused by budgetary slack?“Budgeting is the same across different organisations and industries, so organisational strategy, industry and the broader goals and objectives of a business are not of much importance in the budgeting process”. Do you agree with this statement? Explain why or why not.Which of the following is not a benefit of budgeting? O Provide a way to measure business performance Help managers communicate expectations and quickly. spot deviations Keep managers focussed on financial implications of their business decisions O Provide a way to hire specialized labors
- 1. Many companies face budgetary challenges on a continual basis. Two critical aspects that businesses lack when budgeting is effective controlling practices and monitoring. 2. Budgeting is essential to businesses, but it is not that simple to implement: What are some challenges and weaknesses that a firm may find in the budgeting process? What are some examples of effective monitoring and control practices, and how do they help address budgetary challenges? Discuss the role of the budgeting committee and its responsibilities.Generally speaking, budgets are not used to: assist in the control of profit and operations. facilitate communication and coordinate activities. evaluate performance. create a plan of action. identify a company's most profitable products.Which among the following is not an element of budgeting? a. Budgeting should state the firm’s expectations clearly b. The targets fixed should be very high in budgeting. c. Good system of accounting is essential. d. The authority and responsibility should be clearly fixed.
- Which of the following is not a benefit of budgeting? It allows for coordination between different departments within a firm. It compels managers to develop objectives and to plan allocating resources to achieve the objective. It provides performance evaluation and feedback. It reduces the need for analysis with regard to company expenses.“Budgets are the best management tool, but I think they can cause arguments and disagreements between different budget holder.” According to this quote, discuss in detail the possible advantages of budgeting.Which of the following statements are TRUE? I. Responsibility accounting attempts to assign blame for problems to a specific manager.II. One benefit of a budget is that it helps managers gather relevant information for improving future performance.III. Challenging budgets tend to motivate improved performance.IV. Controllability may be difficult to pinpoint because some costs are the result of the market, not the manager.