Business Studies Unit 2 Revision

Benefits and Drawbacks of Using Budgets

Drawbacks of Budgets:

  • They are difficult to monitor fairly. Senior managers will be less aware of detailed expenditure and costs, so they may rely on the honesty of the budget holder in explaining a department or sections budgeting needs.
  • Allocations may be incorrect. Budgeting is based on predictions of future events. In all areas


Gabby Tracey


not very useful, you have only wrote a few points about the drawbacks :)