Advantages of participative budgeting questions
1. Briefly describe why budgetary planning is important to
managers.
2. What role do budgets play in the planning and control
cycle?
3. What is a strategic plan and how does it relate to short- and
long-term goals?
4. Suppose that your strategic plan is to retire comfortably at
the age of 55. List several long-term objectives, short-term
objectives, and tactics that would enable you to accomplish
this goal.
5. Identify and briefly discuss the benefits of budgeting.
6. Suppose a company chooses not to develop budgets.
Describe three potential negative consequences of this
decision.
7. What are the advantages and disadvantages of participative
budgeting compared to top-down budgeting?
8. What is budgetary slack and why might it be detrimental to
a company?
9. Briefly explain how each of the following helps to minimize
dysfunctional behaviors caused by budgeting:
(a) Different budgets for different purposes.
(b) Continuous budgeting.
(c) Zero-based budgeting.
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