Usefulness of a budget

• Give three uses of a Budget?

  Control income and expenditure

  Provide direction and co-ordination for business objectives

  Set targets and establish priorities
• 4 benefits of using budgets?

  Establishes priorities

  Motivate staff

  Set goals

  Helps to plan
• 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