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increases the probability that the company goals and objectives will be achieved                                                    staff may be demotivated, if the targets set are too difficult or too easy to achieve, if they are made responsible for something outside their competence or does not identify themselves with the targets

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- Find out long/short term issues
-Plan budget for the whole year.
- find out the best time to invest money in more expensive expenditure
Disadvantage
- Take a time

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Advantages and disadvantages of budgeting

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Time demand can be deterring

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advantage: you can see where all your money is going 

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advantage: you can see where all your money is going 

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Disadvantage: time required to budget
Heather and Sam

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Advantage - If budgets are managed efficiently then the variance of the budgets and actual are likely to be favorable. Disadvantage - If the company overspends their budgets, they are more in risk of the variance being in adverse.

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Advantage - If budgets are managed efficiently then the variance of the budgets and actual are likely to be favorable. Disadvantage - If the company overspends their budgets, they are more in risk of the variance being in adverse.

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Revenue
Variable/Fixed costs
Non cash expenses
Non operating expenses
Capital costs in an operating budget
Alec, Luke, Tom

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Different types of budget used by business on the day to day to day basis