Page 116 - BA2 Integrated Workbook STUDENT 2018

Chapter 6

Advantages Disadvantages

 Managers  Time consuming
accept budgets
 Budgetary slack
 More motivation
 Need budgetary
 More knowledge knowledge
of 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

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