Question

A manager says the whole annual budgeting process is a waste of time. In digital age it is real time reporting they matters. besides I know so many employees who regularly engage in padding the budget

Answer 1

Answer:

Disagree with the Given statement

A Budget is a future plan of activity which helps the association in accomplishing its key targets and objectives. Budgeting provides a competitive edge to firm to accomplish its key or strategic plan.

Budgeting method is helpful to the firm because of following reasons :

• It helps in setting up divisional and departmental responsibility and accountability
• It helps in appropriate business planning and controlling and accomplishing key targets of the firm
• It helps in accomplishing cost management through proper cost control and cost decrease
• Budgets are considered as focuses against which performance is checked for year-end examinations and giving motivating forces. It helps in performance assessment of representatives and is a wellspring of inspiration to workers to accomplish division targets.
• It helps the executives in dispensing resources in most proficiency path for instance : machine hours, work hours, and so forth .
• It helps the executives in taking ideal and reliable decisions for instance: Price increase, capital investment, fiscal decisions , and so forth