Cont…3.
Budgeting is only a tool of managementIt cannot take place of management but is only a tool of management. “ The budget should
be regarded not as a master, but as a servant.
Expensive techniqueThe installation & operation of a budgetary control system is a costly affair as it requires the employment of specialized staff & involves other expenditure which small concerns may find difficult to incur (need to analyze costs- benefits ratio).
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