• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Budgeting system

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Budgeting system

  • This topic has 3 replies, 2 voices, and was last updated 7 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 9, 2021 at 8:07 pm #640313
    HamzaYusuf
    • Topics: 38
    • Replies: 19
    • ☆☆

    Could you please tell me about the problems faced by the company when the traditional approach is revised to a new budgeting system and why it is revised?

    Secondly I don’t understand what is behavioral aspects of budgeting and the purpose of it and when to use that?

    Please help me with these two questions. I appreciate your help SIR 🙂

    November 10, 2021 at 7:24 am #640337
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    If the method of budgeting is changed then it will take time for those preparing the budgets to get used to the new system and therefore the budgets are likely to be less accurate.

    I discuss the behavioural aspects in my free lectures on budgeting.

    November 10, 2021 at 8:40 am #640341
    HamzaYusuf
    • Topics: 38
    • Replies: 19
    • ☆☆

    But why would the company choose to revise its budget in the first place and introduce a new budget system?

    Is it true that there might be some arithmetical errors or previous errors carried forward in the current budget?

    What are the other reasons to revise the budget that you can tell ??

    November 10, 2021 at 4:23 pm #640370
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    It is not because of errors (for them they might well revise the budget, but that would not be a reason for revising the system used).

    If, for example, they currently use incremental budgeting then they might decide that it would be more useful to change to zero based budgeting or to rolling budgets.

    Also, if at the moment it is top-down budgeting, they might decide that it would be better to change to bottom-up budgeting because it can be more motivating for their managers.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Alistair02 on MA Chapter 1 Questions Accounting for Management
  • AymanR7 on Practice Question Klopp
  • Kyle on Translation of the subsidiary – ACCA (SBR) lectures
  • John Moffat on Discounting, Annuities, Perpetuities – ACCA Management Accounting (MA)
  • Joanne94 on Discounting, Annuities, Perpetuities – ACCA Management Accounting (MA)

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy