Disadvantages Of Budgeting

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Budgeting: virtues and shortcomings. Problems and consequences of the management’s misunderstanding of effectiveness and importance of budgeting technologies. A Thesis Presented to the Faculty of SBS Swiss Business School In Partial Fulfillment Of the Requirement for the Degree Master of Business Administration By 2015 Promoter: Sadvakassova Aigul DO NOT DISCLOSE Thesis Title Presented to the faculty of SBS Swiss Business School In partial fulfillment of the requirement for the degree __________ of Business Administration Student Declaration: I declare that I, Elmira Bekzhanova, the undersigned, have completed this work and that I have not used any other than permitted reference sources or materials nor engaged…show more content…
(http://bse.chemport.ru/byudzhet.shtml) "The budget is a set of the interconnected plans presented in the form of a financial and\or natural performance for the entity in general or its divisions for a certain period of time" (Sheremet A.D. 2006, with 411) "The budget is a set of the interconnected plans presented in the form of a financial and\or natural performance for the entity in general or its divisions for a certain period of time" (Sheremet A.D. 2006, with 411) By determination of Institute of the certified management accountants (USA), the budget – "the quantitative plan in terms of money prepared and accepted till a certain period, which is usually showing the planned income size which should be reached, and\or expenses which should be suffered during this period, and the equity which needs to be attracted to achievement of this purpose". (GAAP: interpretation and applications', 1998 with…show more content…
The counter system of preparation of budgets is good for those companies which have branched structure and where difficult economic communications work. In such cases it is difficult to top management to follow everything that occurs "below". Therefore a certain amount of powers on preparation is delegated "down". But at the same time top management prepares the offers. And further there is a comparison of options, and the golden mean is common efforts. As a result of division receive realistic budget tasks. And leaders of the company receive the mechanism which allows them to perform the chosen
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