Unit 2- Finance- Using budgets
- Created by: Cherry
- Created on: 18-05-12 12:01
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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…
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