Limitations of budgets Flashcards
1
Q
Figures may be inaccurate
A
Lead to poor decisions being made
2
Q
Budgets can be restrictive and prevent improved performance…
A
May be necessary to make money available for certain costs if unexpected opportunities arise
3
Q
Budgets can demotivate staff
A
If budgets are not achievable
4
Q
Budgets can be time consuming to prepare and monitor
A
Can cause managers to neglect other aspects of the business
5
Q
Increase short term costs
A
Cost of software and staff training.
