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“Some experts have suggested that traditional budgeting practices are a constraint on creativity, and the time and energy spent on budget formulation is better spent elsewhere”. (Langfield-Smith et al., 2015,  p.389)

 

 

“Budgets are make or break in businesses…Without budgets, it’s difficult for managers and their employees to know whether they’re on target for their growth and spending goals…Too often, budgeting is thought of as a mechanical tool. The budgeting techniques themselves are free of emotion. However, the administration of budgeting requires education, persuasion and intelligent interpretation”.  (Horngren et al., 2011, p.416/p.436)

 

 

Required:

Discuss the issues raised in the above excerpts. What role do you think budgeting practices play in Australian organisations?

 

 

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