Page 101 - BA2 Integrated Workbook - Student 2017

Budgeting

Advantages Disadvantages

 Managers  Time
accept budgets consuming

 More motivation  Budgetary slack

 More  Need budgetary
knowledge of knowledge
business areas

5.6 Imposed budgeting

The CIMA Terminology defines imposed budgeting as 'A budget allowance
which is set without permitting the ultimate budget holder to have the
opportunity to participate in the budgeting process'.

This may also be referred to as 'top down budgeting'.

Advantages Disadvantages

 Quicker  Lack of
ownership of
 Senior budgets
managers know
strategic plans  Lack of detailed
knowledge of
 Budgetary skills business areas

 Resentment

93