Limitations of Budgeting

1. Affected by personal bias and prejudices.

2. Pelreparation of frailty budgets due to lack of appropriate information.

3. Budget failure due to lack of departmental cooperation.

4. Etra burden and cost increase due to budget preparation.

5. More attention on budget objectives and less attention of employees.

6. Budgets are simply estimates of future activities.

7. Budget decision taken mostly at high level.

8. Ignorance of lower level employees.


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