What are some challenges and weaknesses that a firm may find in the budgeting process?

Which stakeholders might be more interested in the budget rather than the financial statements? Why?

Using budgets as a performance benchmark is often since the actual performance will most likely differ from planned performance.

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?

How can an organization prevent budgetary slack in the budgeting process since the bonuses of managers are tied to the budget?

How would a shift from a tight credit policy to a relaxed policy belikely to affect a firm’s cash budget?

What does a flexible budget performance report do that a simple comparison of budgeted to actual results does not do?

Which of the following is not the key purpose of budget:     Planning     Controlling and Administering     Reporting and evaluating     Maximizing the profit

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.

Do you think  that most decision making impacts both top-down and bottom-up budgeting?