Unit 2- Finance- Using budgets

HideShow resource information
  • Created by: Cherry
  • Created on: 18-05-12 12:01

o       Using budgets

 

Benefits

  • Targets
  • 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)

Disadvantages

  • 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

Comments

Cherry

I've listed the advantages and disadvantages and some examples.

I hope this helps!!!

Similar Business Studies resources:

See all Business Studies resources »See all resources »