o Using budgets
- Inefficiency and waste- so cannot create too much in the future.
- Gives an idea of financial whereabouts due to decisions.
- Improve financial control
- Improve internal communication
- Used as a motivator, by giving employees authority, (Maslow)
- Operation can become inflexible
- Need to be accurate to have a meaning; big differences between budgets and figures can demotivate staff.
Variance analysis- difference between ‘planned’ activities in the…