i just need on;y part 2 done from this assignmnt Document Preview: BUACC 2613Management Accounting 1 Semester 1, 2012AssignmentContribution to overall assessment: 25%Due date: This assignment has...

Part 2 Essay Writing on Corporate Budgeting
Part 2 Essay Writing on Corporate Budgeting
Corporate Budgetary planning is mainly concerned with the preparing the short to medium term plan of the organisation. It is carried out within the framework of the strategic plan as already set. An organisation’s annual budget is considered as an intermediary step towards achieving the strategic plan.
The process of preparing and using budgets differ from organisation to organisation. However there are number of key requirement in designing the budgetary planning and control process.
Budgets provide means of Co-ordination of the business as whole. In the process of establishing budgets, the various factors like production capacity, sales possibilities, and procurement of material,labour,etc are balanced and co-ordinates so that all the activities proceed according to the objective. The need for Co-ordination in the planning process is immense. The interrelationship between the functional budgets (e.g. sales production, purchasing) means that one budget cannot be completed without reference to several to several others.
Corporate Budgeting has its own advantages as well as disadvantages. Having visited the website like http://papers.ssm.com/so13/papers.cfm?abstract_id=321520 and
http://www.bbrt.org/beyond-budgeting/bb-problem.html
I agree with the issues raised above.
To every advantage certain disadvantages are attached therewith. Some of the disadvantages attached with Budgeting are as follows as under.
( Its time consuming and employees are accustomed to the process.
( Prompt actions cannot be undertaken to meet unforeseen circumstances on account of which most of the oppournites cannot be grabbed
( It’s an expensive process
(Budgets results in unethical practices and the corporate images
( It may create dispute among the other units or departments particularly the service department, when manager is unable to achieve the desired results and may blame the service department for not achieving the target level.
( Budgets make the people to work minimum, unless additional incentive is given to work more.
( Lack of transparency in decision making, as the power to take decision lies only to the subjective people.
With extreme global cut-throat competitions, ever changing government policies and with motives to improve balance sheet figures, corporates are using Budgeting as an important tool to improve figures in the balance sheet, without achieving the desired results, thus resulting in accounting and corporate frauds. Number of Corporate frauds has taken place in the forms of accounting irregularities, where most of the frauds have been because of poor budgeting practices. Thus Corporate Budgeting are being designed to indulge in frauds and irregularities by business houses and organisation , resulting to breach of trust, loss of integrity, loss of reputation ,loss of goodwill, loss of brand name or image. Cooking of books have become easier by indulging in budgeting...