(Drury) The Budgeting Process - The multiple functions of budgets
6 important questions on (Drury) The Budgeting Process - The multiple functions of budgets
What are the useful functions of budgets? (6)
2. Coordinating the activities of the various parts of the organization and ensuring that the parts are in harmony with each other
3. Communicating plans to the various responsibility centre managers
4. Motivating managers to strive to achieve the organizational goals
5. Controlling activities
6. Evaluating the performance of managers
Why is there still a planning step in budgeting?
However, the budgeting process leads to the refinement of those plans, since managers must produce detailed plans for the implementation of the long-range plan.
How does budgeting motivate?
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How does budgeting demotivate?
What is management by expectation?
How does budgeting help performance evaluation?
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