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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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