ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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budgets are based on unknown factors
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link objectives and resources
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fosters careful study before making decisions
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provides and accurate analytical technique
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Detailed explanation-1: -Spending more than necessary Of course, if you have a large budget, certain departments may feel like they need to spend all the money you allocated to them. This can lead to overspending over time and cause you to inflate future budgets.
Detailed explanation-2: -It allows managers to plan ahead, allocate resources effectively, and improve communication and coordination. However, it’s important to be aware of the potential drawbacks, such as inflexibility, time-consumption, conflict, and unrealistic targets.
Detailed explanation-3: -The biggest disadvantage of zero-based budgeting is that it is very time-consuming to plan. In traditional planning, the previous year’s budgets are simply adjusted slightly and then the planning is done. This is not possible with zero-based budgeting.
Detailed explanation-4: -Income of the Family. Size of the Family. Composition of the Family. Occupation of the Family members. Intercity Differences. Family Goals. Socio-economic Status of the Family. Gainful Employment. 31-Mar-2012