Budgeting is too often looked upon from a purely mechanistic viewpoint. The human factors in budgeting are more important than the accounting techniques. The success of a budgetary system depends upon its acceptance by the company members who are affected by the budgets.'

 

Discuss the validity of the above statement from the viewpoint of both planning and the control aspects of budgeting. You should include at least one practical illustration to support your conclusions.

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The Validity of Human Factors in Budgeting The statement holds significant truth While accounting techniques are crucial for budgeting human factors p... View the full answer