Lyne and Dugdale (2002) carried out a survey of the opinions of financial and non-financial managers of companies in the South-West of England. They asked the managers about the importance of a range of business uses. This table sets out the perceptions of the managers. Financial and nonfinancial managers gave similar answers.

Discussion points
1 What conclusions may be drawn here about the relative importance of planning and control as reasons for preparing budgets?
2 What conclusions may be drawn here about the relative importance of communication and motivation as reasons for preparing budgets?

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Purpose of budgeting Overall Planning Control Co-ordination Communication Authorisation Not very important, or almost irrelevant % 5.1 2.5 5.0 17.5 17.5 10.0 Motivation 37.5 Performance evaluation 12.5 Fairly important % 23.1 25.0 20.0 37.5 35.0 40.0 30.0 22.5 Very important, or extremely important % 71.8 72.5 75.0 45.0 47.5 50.0 32.5 65.0