Voluntary budgeting allows executives from all departments of an organization to participate in budgeting. This type of budgeting is necessary because it creates a sense of belonging and solidarity and allows different department heads to have a say in a self-imposed budget.
Help set achievable goals: Self-imposed budgets allow different departments to be involved in the budgeting process, allowing them to set goals they know they can achieve.
Higher Levels of Commitment and Motivation: When a budget is created by one of her managers, other managers are likely to be less motivated and committed to achieving the budget than if all were involved. I have.
Peaceful Work Environment: Teamwork creates a harmonious and relaxed work environment where everyone's opinion is respected.
Accurate Cost Estimates: Helps individual department heads accurately estimate departmental costs and expenses and create more accurate budgets the major advantages of self-imposed budgets.
Managers must observe the following precautions with self-imposed budgets:
Top managers should carefully consider the input of junior managers to reduce budget slack and future liability and difficult decisions. Budget slack refers to taking too long to complete the budgeting process. Even if the top and bottom disagree, the top must keep up with budgeting.
Learn more about the budget at
https://brainly.com/question/6663636
#SPJ4
