Revision question on criticism of budgeting process.



Budgeting process has been criticized as follows:

  1. It is a cumbersome process which occupies considerable management time
  2. It is a process that focuses on short term financial control
  3. It has undesirable effects on the motivation of managers, and
  4. It emphasizes formal organizational structure

REQUIRED

  • Explain these criticisms
  • Explain the change that can made in response to these criticism to improve the budgeting process.

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