What are the limitations of budgetary control?
The following points will highlight the six major limitations of budgetary control, i.e, (1) Uncertain Future, (2) Budgetary Revisions Required, (3) Discourages Efficient Persons, (4) Problem of Co-Ordination, (5) Conflict among different Departments, and (6) Depends upon Support of Top Management.
What are the benefits and limitations of budgeting?
Benefits and Limitations of Budgeting
- It has the following benefits:
- (a) Standards of performance:
- (b) Budgets facilitate planning:
- (c) Basis for coordination:
- (d) Motivation and job satisfaction:
- (e) Helps in predicting future:
- (f) Facilitates communication:
- (g) Facilitates delegation of authority:
What are 2 disadvantages of budgeting?
The disadvantages of budgeting
- Time Required.
- Gaming the System.
- Blame for Outcomes.
- Expense Allocations.
- Spend It or Lose It.
- Only Considers Financial Outcomes.
- Strategic Rigidity.
- Related Courses.
What are the limitations of budget?
Limitations of Budgeting
- Inaccuracy.
- Time-Consuming & Costly.
- Rigidity.
- Excessive Spending.
- Scope for Manipulation.
- Allocation of Expenses.
- Financial Outcome Oriented.
What is budgetary control How are budget used in controlling and what are the limitations?
Budgetary control is a system of controlling cost which includes preparation of Budgets coordinating the departments and establishing responsibilities comparing performance with budgeted and acting upon results to achieve the maximum profitable. The process of budgetary control includes: Preparation of various budgets.
What are the limitations budget?
Inaccurate or unreasonable assumptions can quickly make a budget unrealistic. Budgets can lead to inflexibility in decision-making. Budgets need to be changed as circumstances change. Budgeting is a time consuming process – in large businesses, whole departments are sometimes dedicated to budget setting and control.
What are the limitations of financial budget?
What are the limitations of budgeting for a business?