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Budgets are widely used within organisations. In most cases they are considered as a performance...

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Question

Accounting

Budgets are widely used within organisations. In most cases they are considered as a performance contract between the organisation and its managers. This has often led to a range of behavioural issues between the managers and organisations.

Required:

  1. Evaluate any SIX problems that can happen relating to the use of budgeting.

b) Suggest ways in which each of the six problems evaluated in (a) above may be overcome.

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