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Though they are not always adhered to, the necessary conditions for a system of fiscal decentralisation include all of the following except:
Budget autonomy
Freedom from excessive central expenditure mandates
Hard budget constraint
Locally appointed chief officers
Transparency
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- The budgeting process is an essential component of management control systems, as it provides a system of planning, coordination and control for management. It is often an arduous process, however, and often strikes dread in the hearts of those involved in budget preparation.In the public sector, the budgeting process can be even more difficult, since the objectives of the organization are more difficult to define in a quantifiable way than the objectives of a private company. For example, a private company's objectives may be to maximize profit. The meeting of this objective can then be set out in the budget by aiming for a percentage increase in sales and perhaps the cutting of various costs. If, on the other hand, you are budgeting for a public sector organization such as a hospital, then the objectives may be largely qualitative, such as ensuring that all outpatients are given an appointment within eight weeks of being referred to the hospital. This is difficult to define in a…Which of the following is NOT correct about budgetary control. Select one: a. It is a legally compulsory process which is controlled by governments. b. There cannot be budgetary control without budgets. c. It is a system which uses budgets as a means of planning and controlling. d. It is the process of establishment of budgets relating to various activities and comparing the budgeted figures with the actual performance for arriving at deviations, if any.The major objectives of any budget system are to Define responsibility centers, provide a framework for performance evaluation and promote communication and coordination among organizations segments Define responsibility centers, facilitate the fixing of blame for missed budget predictions, and ensure goals congruence between superiors and subordinates Foster the planning of operations, provide a framework for performance evaluation, and promote communication and coordination among organization segments
- Required: Identify the problems that appear to exist in the company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system. Explain how the company’s budgetary control system could be revised to improve its effectiveness.With: None of the above, a budgetary control system promotes centralised control. Activity that is not centralised Both a) and b) are examples of centralised activity.Which of the following is NOT an objective of the budgeting process? Group of answer choices a - To communicate management's plans throughout the entire organization b - To ensure that the company continues to grow. c - To uncover potential bottlenecks before they occur d - To provide a means of allocating resources to those parts of the organization where they can be used most effectively.
- Which one of the following is not considered to be a benefit of participative budgeting? When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations. Managers are more motivated to reach the budget goals because they participated in setting them. Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization. The budget estimates are prepared by those in direct contact with various activities.Which one of the following best describes the role of top management in budgeting process? Top management Should be involved only in the approval process Lacks the detailed knowledge of the daily operations and should limit its involvement Needs to be involved, including using the budget process to communicate goals Needs to separate the budgeting process and the business planning process into two separate processesWhat justification you would give to the firms board of directors for creation and maintenance of separate and sizeable budget for training and development.?
- There are a number of benefits associated with budgeting. Which of the following is not frequently cited as a benefit of the budget process? Budgets help to monitor and control operations. Budget eliminates the opportunity for slack or padding within an organisation. Budgets provides a method of allocating and using resources within the organisation. Budget are an early warning system. They highlight where investigation and appropriate correction action is necessary.Which of the following budgeting processes is LEAST likely to motivate managers toward organizational goals?a. setting budget targets at attainable levelsb. participation by subordinates in the budgetary processc. use of management by exceptiond. holding subordinates accountable for the items they controle. having top management set budget levelsWhich of the following best describes the role of top management in the budgeting process? Should be involved only in the approval Should not necessarily have detailed knowledge of the daily operations and should limit their involvement Should be enthusiastic and committed to the budget process Separates the budgeting process and the business planning process please answer immediately :)