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The budget is based on a set of assumptions that is forecasted nearly o the operating..

The budget is based on a set of assumptions that is forecasted nearly o the operating environments that the business is operated under. However, any sudden change in scenario can move the revenue as well as the cost structure radically that cannot be predicted in advance. 2. Rigid decision making is another flaw in the budgetary process where generally the organisation prepares the budget at the end of the fiscal year based on the previous outcomes. However, Wallander (2001) has defined that no such procedural commitment is employed in rest of the year. Therefore, any significant and fundamental shift of market immediate after the budgetary process cannot be measured or reviewed. 3. The process consumes higher time to prepare a budget specifically for the poorly organised environment as mentioned above in case of the Tesco.

 

Apr 30 2020 View more View Less

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