Question

describe several operational and behavior benefits that are generally attributed to a participative budgetary process

Answer 1

Answer:
Operational and behavioral benifits which are attributed to a participative budgetary process are given below:
Behavioral Benifits:

• Raising potential issue in advance : As budget is the blueprint of execution we can find out in advance any potenatial deviation on time.
• It Intensify managerial Perspective in execution : On a regular day basis manegers mostly focused on day to day problem, while preparing budget, they are being forced to think about all aspects of company's internal working and how it can affect each other.

Operational Benifits:

• Basis of Performance Evaluations and Appraisal : A budget can be viewed as a refernce frame against which actual performance can be measured. We can have more control by comparing the actual results with budget. If being deviated we can find the reason behind it. And do the needful for the same. It can be classifoed in two parts:​​​
  1. Controllable factors
  2. Uncontrollable factors
• Defines area of responsibilities: While forming the budget managers can clearly define various area of responsibilities and operations that needs to be done to achieve the budget target.
  

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