Budgeting Can Be an Important Management Tool If Implemented Properly

question 141

Essay

Budgeting can be an important management tool if implemented properly. Identify several positive results when budgets are used properly. Since budgets affect people identify several negative aspects if budgets are not implemented properly.

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Definitions:

Hyper-Inflationary

Refers to an economic situation characterized by extremely high and typically accelerating inflation rates, leading to a rapid erosion of the currency's value.

IAS 29

An International Accounting Standard that deals with financial reporting in hyperinflationary economies, requiring financial statements to be adjusted for changes in purchasing power.

Financial Reporting

The method of generating reports that reveal the financial condition of a company to its management, investors, and governmental bodies.

Foreign Subsidiary

A company that is owned or controlled by another company but is located and operates in a country other than the one where the parent company resides.