Question 2 Budgeting is a very useful process for any organisation and it is essential in a number of areas including planning, controlling, evaluation of performance, motivation and communications. As the Budget officer for your organisation, your Managing Director has asked you to brief a senior management meeting that is scheduled to discuss the budgeting process for the upcoming year. One of the items on the agenda for the meeting is how to motivate the managers and also control the activities of these managers. You are required to: a) Explain how a budget can be used as a motivating tool as well as a controlling tool; b) Describe the limitations of budgeting in an organisation.

Breaking down resistance to a new strategic vision typically requires that management, on an as needed basis, Select one: O A. reiterate the company's need for the new direction, while addressing employee concerns head- on, calming fears, lifting spirits, and providing them with updates and progress reports as events unfold. O B. raise wages and salaries to win the support of company personnel for the company's new direction. O C. institute a balance scorecard to measuring company performance, with the balance including a mixture of both old and new performance measures. O D. explain all updates and merits of the company's business model to align strategy with employee concerns. O E. inform company personnel about forthcoming changes in the company's strategy.

The financial accounting system is the primary source of information for: Multiple Choice planning the budget for next year. decision making on the factory floor. preparing the Income statement for shareholders. Improving the performance level of customer service.

Use the guiding questions below to develop recommendations based on the June budget to help the manager of the marketing department • How does the budget help the marketing department coordinate their needs with other departments? • How can the budget be used to evaluate the marketing department’s performance?