Which of the following is a disadvantage of participative budgeting?
time-consuming The most common limitation of a participative budget is that it is time-consuming compared to an imposed budget. Since the budget preparation starts from the department level to the top, too much participation may occur that may derail the process.
What is a downside to a participative budget quizlet?
A second disadvantage is that participative budgeting can foster budgetary "gaming" through budgetary slack. Budgetary slack occurs when managers intentionally underestimate budgeted revenues or overestimate budgeted expenses in order to make it easier to achieve budgetary goals.
Which of the following is not a potential disadvantage of a cost center?
Which of the following is not a potential disadvantage of a cost center? Increased monitoring of costs. An investment center is responsible for each of the following except: Earnings per share.
What is participative budgeting discuss some of its advantages?
Participative budgeting (PB) is a budgeting method that allows people in the lower levels of management to participate in the budget creation process. It gives employees a greater sense of ownership and control over the resulting budget.
What is meant by participatory budgeting?
Participatory budgeting is a form of citizen participation in which citizens are involved in the process of deciding how public money is spent. Local people are often given a role in the scrutiny and monitoring of the process following the allocation of budgets.
Which of the following are advantages of budgeting?
A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Which of the following is an advantage of participative budgeting quizlet?
variable cost of selling. Which of the following is an advantage of participative budgeting? It fosters a sense of responsibility. congruence.
Which of the following are advantages of imposed budgeting?
One of the benefits of using imposed budgeting is the efficiency that an organization achieves. When a department is given an allocation by the finance department, it must figure out how it will use that budget to achieve the set targets and objectives of that department.
What are the disadvantages of cost accounting?
Limitations of Cost Accounting – Cost Accounting is Unnecessary, Cannot be Adopted by Small Business Concerns, Very Costly and Results are Misleading
- Cost Accounting is Unnecessary: …
- Cost Accounting System cannot be adopted by Small Business Concerns: …
- Cost Accounting System is Very Costly: …
- Costing Results are Misleading:
What are the weaknesses disadvantages of production budget?
The key disadvantages are noted below.
- 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. …
- Gaming the System. …
- Blame for Outcomes.
May 16, 2022
Who uses participatory budgeting?
One way participatory budgeting can be utilized by cities is through eligible Department of Housing and Urban Development Housing and Community Development funds, which can be used to promote affordable housing, provide services to the most vulnerable citizens, and create jobs through the expansion and retention of …
What are the disadvantages of budgeting?
Types of budgeting disadvantages
- Determining the right process. …
- Feeling constrained. …
- Spending more than necessary. …
- Finding the time for it. …
- Making the right decisions. …
- Impacting how employees feel. …
- Overlooking important factors. …
- Having top-level employees do all the planning.
What are the advantages and disadvantages of budgeting?
Comparison Table for Advantages and Disadvantages of Budget
| Advantages | Disadvantages |
|---|---|
| A budget provides a structured plan leading to better decision making and goal achievements. | A budget is a more time-consuming and inaccurate format for estimating a summation of expenditures and revenues. |
•Apr 20, 2022
Which of the following is an advantage of budgeting?
A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.
Which one of the following is an attribute of a participative approach to budgeting?
an attribute of a participative approach to budgeting: Ans: Expertise leads to informed budget decisions.
What are the disadvantages of self imposed budget?
Budget estimates prepared by lower-level managers should be scrutinized by higher levels of management. Without such a review, self imposed budgets may be too loose and allow much “budgetary slack.” The result will be inefficiency and waste.
What is participatory budgeting process?
Participatory Budgeting (PB) is a democratic process in which community members directly decide how to spend part of a public budget. The process began in Porto Alegre, Brazil in 1989. Today, there are more than 3,000 participatory budgeting processes around the world, most at the municipal level.
What are the disadvantages of accounting?
Disadvantages of Accounting
- Expresses Accounting information in terms of money.
- Accounting information is based on estimates.
- Accounting information may be biased.
- Recording of Fixed assets at the original cost.
- Manipulation of Accounts.
- Money as a measurement unit changes in value.
What is a disadvantage of budgeting?
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. The time involved is lower if there is a well-designed budgeting procedure in place, employees are accustomed to the process, and the company uses budgeting software.
What are advantages and disadvantages of budgeting?
Comparison Table for Advantages and Disadvantages of Budget
| Advantages | Disadvantages |
|---|---|
| A budget assists the business schemes throughout with the best utilization of the available resources. | Sometimes the budgeting might be very costly than the actual business plan which may or may not be affordable by all types of companies. |
•Apr 20, 2022
What are some advantages and disadvantages of budgeting?
Comparison Table for Advantages and Disadvantages of Budget
| Advantages | Disadvantages |
|---|---|
| A budget assists the business schemes throughout with the best utilization of the available resources. | Sometimes the budgeting might be very costly than the actual business plan which may or may not be affordable by all types of companies. |
•Apr 20, 2022
Which of the following is an disadvantage of budgetary control?
ADVERTISEMENTS: The following points will highlight the six major limitations of budgetary control, i.e, (1) Uncertain Future, (2) Budgetary Revisions Required, (3) Discourages Efficient Persons, (4) Problem of Co-Ordination, (5) Conflict among different Departments, and (6) Depends upon Support of Top Management.
What are the disadvantage of budgeting?
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. The time involved is lower if there is a well-designed budgeting procedure in place, employees are accustomed to the process, and the company uses budgeting software.
What are the disadvantages of budgetary control?
ADVERTISEMENTS: The following points will highlight the six major limitations of budgetary control, i.e, (1) Uncertain Future, (2) Budgetary Revisions Required, (3) Discourages Efficient Persons, (4) Problem of Co-Ordination, (5) Conflict among different Departments, and (6) Depends upon Support of Top Management.
What is the advantage and disadvantage of budgeting?
Comparison Table for Advantages and Disadvantages of Budget
| Advantages | Disadvantages |
|---|---|
| A budget assists the business schemes throughout with the best utilization of the available resources. | Sometimes the budgeting might be very costly than the actual business plan which may or may not be affordable by all types of companies. |
•Apr 20, 2022
Which of the following is one of the potential drawbacks of the top-down budgeting approach group of answer choices?
The major disadvantage of a top-down budgeting process is: Answer: lack of buy-in by middle and lower-level management. In a top-down approach, upper-level management creates the budget and communicates goals to managers at lower levels.
What are the advantages and disadvantages of zero-based budgeting?
The major advantages are flexible budgets, focused operations, lower costs, and more disciplined execution. The disadvantages include the possibilities of resource intensiveness, being manipulated by savvy managers, and bias toward short-term planning.
Is participatory budgeting good?
That's why participatory budgeting is one of the highest-ranking engagement methods on the participation ladder. While it requires careful planning and preparation, it also bolsters the legitimacy of your decision-making and the sense of trust community members foster towards their elected representatives.
Why does participative budgeting increase the likelihood of budgetary slack?
Budgetary slack is most common when a company uses participative budgeting, since this form of budgeting involves the participation of a large number of employees, which gives more people a chance to introduce budgetary slack into the budget.
What’s the advantages and disadvantages?
As nouns, the difference between disadvantage and advantage is that disadvantage is a weakness or undesirable characteristic; a con while the advantage is any condition, circumstance, opportunity, or means, particularly favorable to success, or any desired end.