Question

Identify any Five benefits that may accrue to an organization which operates a budgetary system

Answer 1

Answer :There are various Benefits to an organization which operates a budgetary system :

(a.) Define Objectives : Budgeting Defines objectives than an organisation wants to achieve in ints future period in numerical terms .If objectives are made known then the employeys could work accordingly to achieve the stated objectives.

(b.) Plan Spending :Budgeting requires the management to plan the spending accordingly which helps to control the unnecessary expenses.

(c.) Caution :Budgeting forces management to look into the problems related to the timely implementation of the objectives and also helps them to compare the actual performance with planned performance and take actions accordingly.

(d.) Discloses Weakness : Budgetary sysytems helps to disclose the weakness in the system and plan accordingly ahead.

(e.) Achievement of Desired Result : Since it involves people from all the level they work together and achieves the necessary objectives .