Budgeting Comments (Exercise 6-13 – Revised) Select one of the following quotes from the text to...

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Budgeting Comments (Exercise 6-13 – Revised) Select one of the following quotes from the text to discuss. Clearly state whether you either agree or disagree with the comment and support your opinion...

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Budgeting Comments

(Exercise 6-13 – Revised) Select one of the following quotes from the text to discuss. Clearly state whether you either agree or disagree with the comment and support your opinion with at least one scholarly resource. Include in your response an explanation of the major purposes of budgeting. Your initial post should be XXXXXXXXXXwords.

"One major criticism of budgeting is that it is used as a ‘cost reduction’ tool rather than a ‘cost control’ tool. The objective of the budget is to control costs at an efficient level of operation."
"There are generally three benefits from allowing employees to participate in developing the budget: (1) Employees tend to accept the budget as their own plan of action. (2) Participation tends to increase morale among employees and toward management. (3) Employee cohesiveness is increased, and productivity will also increase if dictated by the group norm."
"Even though budgets are quantitative tools, considerable emotion is connected to budgeting. The individual in control often sees the budget as a means of getting things done. People being controlled often have feelings of anxiety because their success and promotion are tied directly to the budget
."

Answered Same Day Apr 14, 2021

Khushboo · Accepted Answer

COST CONTROL 
COST CONTROL		2
	
FROM: KHUSHBOO MURARKA
DATE: 15/04/2019
SUBJECT: COST CONTROL
Budgeting is a powerful technique or tool that is used to control the costs. We are disagreed from the above-mentioned statement that one of the major criticisms of the budgeting is used as a cost reduction rather than a cost control tool. The budget is prepared based on various assumptions and it cannot be assumed that budgetary system and assumptions will be perfect, and the actual transactions to be happened as per assumptions taken in budgeting. The usefulness of budgeting should not be over emphasized.

Budgeting Comments (Exercise 6-13 – Revised) Select one of the following quotes from the text to discuss. Clearly state whether you either agree or disagree with the comment and support your opinion...

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