Critically evaluate the comment that ‘traditional budgeting practices are constraint on creativity, and the time and energy spent on budget formulation is better spent elsewhere’.

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December 22, 2020
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December 22, 2020

1. Briefly discuss the budgeting process. (5 marks)
2. Based on your selected journal article, discuss citing examples whether the budgeting process satisfies
the purpose of planning, controlling and evaluating performance. (5 marks)
3. The two widely used practices in preparing budgets are ‘top down’ budgeting and ‘bottom up’
budgeting. Identify and explain the practice adopted by the organisation discussed in your selected
journal article and further explain the behavioural implications of adopted practice. (5 marks)
4. Based on your literature findings (above), critically evaluate the comment that ‘traditional budgeting
practices are constraint on creativity, and the time and energy spent on budget formulation is better
spent elsewhere’.
5. Based on your literature findings (above), would you recommend budgeting for contemporary
organisations for planning and control purpose? Explain (5 marks)

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