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2.2.3 Break-even & 2.2.4 Budgets Categorise

Target Level

Running Total

Attempt

1 of 1

Click on an item, then click on a category to place it. Or, drag and drop the item into the correct category. Organise all items before clicking 'Check'.

Identify which phrases relate to the uses of budgeting and the phrases which relate to the limitations of budgeting

USES OF BUDGETS

LIMITATIONS OF BUDGETS

Can be used as a communication tool

Means the business can keep a tighter control on expenses

Can be used to evaluate a managers effectiveness

Can be used as a planning tool

Essentially a forecast, so values cannot be guaranteed

Can be used as a motivational tool

Is quantitative so does not take into account qualitative factors such as customers needs

Can be time consuming

Some managers will see the budget as a target to spend up to

Can be used to identify where finance is needed

Based on assumptions

This is your 1^st attempt! You get 1 marks for each one you get right first time. Good luck!

Pass Mark

70%