Question: Advanced Budgeting has been criticised as a cumbersome process which occupies considerable management time; concentrating unduly on short-term financial control; having undesirable

Advanced Budgeting has been criticised as

• a cumbersome process which occupies considerable management time;

• concentrating unduly on short-term financial control;

• having undesirable effects on the motivation of managers;

• emphasising formal organisation structure. Requirements:

(a) Explain these criticisms. (8 marks)

(b) Explain what changes can be made in response to these criticisms to improve the budgeting process. (12 marks)

(Total 20 marks) CIMA Stage 4 Management Accounting Control Systems

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