Usefulness of a budget

• 4 benefits of using budgets?

  Establishes priorities

  Motivate staff

  Set goals

  Helps to plan
• What are some difficulties of budgeting?

  Time consuming to prepare , monitor and control

  unrealistic budgets can be demotivating
• Limitations of budgeting ?

  Difficult to plan ahead because of large unplanned changes for some industries

  Can make managers more budget driven rather than customer driven - short sighted