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I am doing this question
Five inherent weakness of the annual budget model irrespective of the budgeting approach applied?
1. The future is never certain hence budgeting cannot be accurate
2. May not maximize the potential of the use of company resources
3. May encourage managers to have a short termism mind set to achieve high bonus
4. Budgeting time up management time and result in additional cost
can you review and add any comment, not sure if this is what the question is asking
All ok. In addition:
Concentrates on financial and quantitative measures at the expense of non-quantitative
Effort can stop once budget is achieved
Might not be flexible enough to respond to environmental factors.
Can be subject to padding.
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