ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Might take short term decisions
|
|
|
will feel less motivated
|
|
|
Might spend their budget rather than make savings
|
|
|
will always spend more than their allowance
|
Detailed explanation-1: -Time Required. It can be very time-consuming to create a budget, especially in a poorly-organized environment where many iterations of the budget may be required.
Detailed explanation-2: -It can be very time-consuming to create a budget, especially in a poorly-organized environment where many iterations of the budget may be required. The time involved is lower if there is a well-designed budgeting procedure in place, employees are accustomed to the process, and the company uses budgeting software.
Detailed explanation-3: -Budgets are only as good as the data being used to create them. Budgets can lead to inflexibility in decision-making. Budgets need to be changed as circumstances change. Budgeting is a time consuming process – in large businesses, whole departments are sometimes dedicated to budget setting and control. More items
Detailed explanation-4: -Not being strategic. Whereas some business start with nothing in the hopes of building up, others start with investment and hope to keep it going. Underestimating the initial costs of starting up. Underestimating ongoing costs. Setting the wrong prices. No contingency plan.