... for the companies best interests. This means that responsibility needs to be delegated, therefore the responsibility of expenditure will be required and delegated down the organisation by management so that parts of the organisation, e.g. different sections within the organisation like the production section and the sales department, will need to function independently in order to meet the targets set by the company. To control these sections or departments, a budget tends to be used to restrict expenditure and increase efficiency in order to reach the targets set. It is therefore important to examine if budgets are needed within companies by studying the advantages and disadvantages of them and whether companies can function without a budget, meaning the control of expenditure can be delegated without enforcing any means of control. Within companies, budgets are commonly used and are seen to be required to set financial targets within different sections of ...

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