The limitations of Budgetary Control System arise mainly due to poor___ of entire budget process.
Answers
Answer:
Disadvantages or Limitations of Budgetary Control
The budgets are prepared on the basis of estimates. ...
Future is uncertainty and cannot be predictable accurately. ...
A budgetary programme is a rigid one. ...
The budgets may be revised from time to time because of changed conditions. ...
If the budgets are revised frequently, the employees can lose their faith in budgeting
Answer:
The limitations arises due to the poor management.
Explanation:
In this question, we have to determine the reason for which the limitation of the budgetary control system arises. The limitation of budgetary control arises due to the poor management of the budget process. For the success of budgetary control, it is necessary for the company that the management of the budgetary process should be correct. If the management is not done properly then it becomes a limitation of the budgetary control. Due to the poor management the process of budget preparation cannot be done in the proper manner this will lead to the wrong estimation of the budget, data collection cannot work efficiently. By these reason the limitations of Budgetary control arises.
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