BUDGETING

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  • Created by: amy
  • Created on: 08-05-13 09:25

BUDGETING

Advantages

  • Establish Priorities
  • Provide Direction & Co-ordination
  • Assign Responsibility
  • Can Motivate Managers & Delegate Responsibility (it can make people accountable)
  • Improve Efficiency (through monitoring & control)

Disadvantages

  • Poor Communication
  • Incorrect Allocations
  • External Factors (could be down to the economy/competitors actions)
  • Poor Quality Information (may be due to poor market research)
  • Time Consuming

Evaluation

1. Be consistent with the aims of the business .... Do they link with the firms objectives?
2. By consulting with others be based on many peoples opinions
3. Give realistic targets to work towards
4. Be monitored at regular interval
5. Be flexible

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