Benefits of using budgets Flashcards
1
Q
Target setting?
A
Motivates employees which should improve business performance.
2
Q
Improved planning?
A
Helps people be prepared for future events
3
Q
Control?
A
Departments are set limits for expenditure and use of resources which reduces costs.
4
Q
Monitoring and calculation of variances?
A
All budgets can be used to compare actual figures to planned figures. allows changes to be made
5
Q
Communication?
A
Improves communication between departments and managers and other employees.
6
Q
Coordination between departments and employees
A
Budgets help all staff work towards the goals set by senior management.
7
Q
Improved decision-making
A
Managers are better informed as there is more information available.
