Question

1. In 100 words or fewer, explain how managers can use budgets for planning.

2. In 100 words or fewer, explain the differences between participative budgeting and traditional budgeting.

3. In 100 words or fewer, explain when a management would prefer a flexible budget as opposed to a static budget

Answer 1

Answer:

1.

Budget perform essential role in planning and processing, planning rely upon budget as how much expense is allocated to specific activity and it help in applying the planning choice. All through year to keep up planning decision or choice without budgeting is inconceivable. Manager looks advances over the timespan in planning procedure and allotment of budget to a particular procedure. Budegt helps saving money on over cost of a procedure or planned activities. Budgeting permits director to control and screen where they going or spending through unnecessary cash.

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2.

Tradition Budgeting :

Tradition Budgeting gets data of budget from top administration like CEO and other official and that prepared by concerned people while in participative budget is approach which is somewhat collaborative it gets data and details from finance administrator and afterward they illuminate about budget to top administration and CEO.

Participative budget :

Participative budget is prepared by the individuals who got impacted under and proactively associated with this procedure while traditional budget is handled by the administration as it were .

Differences between participative budgeting and traditional budgeting:

Traditional budget creates confusion among department since it is overseen by top administration while participative budget is being set up by the cooperation it clear the confusion between divisions or departments since representatives better think about the cost or expenses of division.

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3.

Each time supervisor set up the budget not all cost are adaptable consistently, assume you need to consider rent for a building for a year than it won't change consistently so all things considered static budget will work. In static budget when by and large yearly cost get changes occasionally static budget will lose its effect. The adaptable or flexible budget will made when there are not many fixed expenses and during the time cost or expenses changes and differs and static budget will work better where the majority of the costs of organizations stay fixed and doesn't change a lot.