What is one disadvantage of budgeting budgeting makes it more difficult? (2024)

What is one disadvantage of budgeting budgeting makes it more difficult?

One disadvantage of budgeting is that budgeting makes it more difficult to coordinate the plans and activities of departmental managers.

What is one disadvantage of budgeting is that budgeting makes it more?

One disadvantage of budgeting is that budgeting makes it more difficult to coordinate the activities of the entire organization. The number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory.

Which of the following is true a benefit from budgeting is that it forces?

A benefit from budgeting is that it forces managers to think about and plan for the future.

Which of the following are advantages of budgeting?

Advantages of budgeting

monitor performance. meet your objectives. improve decision-making. identify problems before they occur - such as the need to raise finance or cashflow difficulties.

What are the disadvantages of budgeting?

Time-consuming: The process of creating and maintaining a budget can be time-consuming, particularly for complex organizations. Gathering data, analyzing historical trends, and forecasting future performance requires significant effort, and the time spent on budgeting could be allocated to other tasks.

Which of the following is a disadvantage of budgeting?

Time Required. It can be very time-consuming to create a budget, especially in a poorly-organized environment where many iterations of the budget may be required.

Is one disadvantage of budgeting is that budgeting makes it more difficult to coordinate?

One disadvantage of budgeting is that budgeting makes it more difficult to coordinate the plans and activities of departmental managers. The production budget is typically prepared prior to the sales budget. The budgeted income statement is typically prepared before the budgeted balance sheet.

What are the advantages and disadvantages of budgeting?

What is one of the benefits that results from budgeting quizlet?

One benefit of budgeting is that is requires managers to plan for the company's future. Decisions are then based on this formalized plan, which helps prevent haphazard decision making. Keep in mind, however, that budgets are plans for future activities and may need to be modified.

What are the advantages and disadvantages of budget and budgetary control?

Which of the following is not a benefit of using a budget?

Final answer:

The incorrect statement about the benefits of using a budget is that it helps you purchase anything you want. In reality, a budget helps you manage finances, prioritize spending, and plan for financial goals within the constraints of your income and necessary expenses.

What are the advantages and disadvantages of a fixed budget?

This amount will remain the same under a fixed budget, whether the company surpasses its sales goals or fails to meet them. One advantage of a fixed budget is its simplicity, as it can be easier to create and understand. However, a major disadvantage is its lack of flexibility.

What are the two primary difficulties of budgeting?

What are the Disadvantages of Budgeting? There are a number of serious problems associated with budgeting, which include gamesmanship, excessive time required to create budgets and budgeting inaccuracy.

Why is budgeting so complicated?

With a traditional budget, you'll usually have to set limits on how much you can spend for all of your expenses. That can be tough for the average person whose expenses vary on a monthly basis, depending on lifestyle factors like out-of-pocket doctor's appointments, travel, birthday gifts and more.

What is a major disadvantage of a static budget?

Answer and Explanation: A disadvantage of static budgets is that they (c.) do not show possible changes in underlying activity levels. The static budget is intended to be fixed and unchanging for the duration of the period, regardless of fluctuations that may affect outcomes.

What is the most difficult part of the budgeting process?

The hardest part of budgeting for most people is unexpected expenses. These may be unexpected, and sometimes unpleasant, but you can still plan for them.

What is the most difficult part of budgeting for a project?

One of the most common project budget challenges is creating realistic and accurate estimates for the project scope, schedule, and resources. If you underestimate the costs, you may run out of money before the project is completed, or compromise the quality and scope.

Is budgeting a difficult process?

Budgeting is difficult when your income or spending is inconsistent. Like many people, my spending and income may vary month to month.

What are the major benefits of budgeting quizlet?

What are the four benefits of budgeting? Identifies spending priorities, prevents potential conflicts with loved ones, aids the development of a financial plan, and encourages good stewardship.

What is participative budgeting what are its potential benefits what are its potential disadvantages?

Participative budgeting also tends to produce budgets that are more achievable since lower-level employees are better positioned to inform their supervisors where funds need to be allocated. When an organization implements participative budgeting, it shows the top management's confidence in its staff.

What are at least three benefits that an organization can expect to realize from budgeting?

Supports Financial Planning

By projecting your revenue and expenses over time, you can plan for future investments, make informed decisions about staffing and salaries, and identify opportunities for growth. A budget can also help you anticipate cash flow problems and plan for emergencies.

What are the disadvantages of flexible budget?

Flexible budgets are inherently more complicated than static budgets because they require more financial oversight and frequent monitoring. Since your budget will change depending on various conditions and factors, it's crucial to monitor your revenue and expenses regularly throughout your various projects.

What are the disadvantages of control?

What is the most common budget period?

The most common time period covered by a budget is one year, although the time period may vary from strategic, long-term budgets to very detailed, short-term budgets.

What is cost behavior?

Cost behavior measures how changes within a business process can affect costs. For example, you may work with a project manager to see how much each stage of workflow costs before completing a task. If the cost of materials is more than you planned, you may need to reassess the cost behavior for the project.