Question 1 Budgeting Fixed and flexible budgeting in an organization

Positive behavioral aspects of budget
• Rather of relying on people who don't understand the day-to-day demands of the company, many layers of planning are taking place. More junior managers will have higher expertise since they are "near the action," which should improve the overall quality of budgeting.
• Communication. It is imperative that all levels of management communicate with one other. By explaining the purpose of the budget and how it relates to other budgets and organizational goals, it may be possible to express the broader strategic goals of the business to management.
• Motivation. For many managers, taking on more responsibility and participating in decision-making is a goal. This might be accomplished by granting them budgetary authority. Management may also assume greater responsibility for reaching budget targets they have established and be more driven to fulfill their promises in the budget.
• Co-ordination. Perhaps it will get more difficult and take longer. That's because, in addition to coordination among departments, coordination must exist inside each department itself at various levels of management. To avoid budget mistakes due to lack of coordination, managers will need to work together and grasp the organization's long-term goals for the budget period.
• Evaluation. Slack may be built into budgets that managers have control over. In other words, they'll inflate or deflate their income targets to make it easier to achieve (if these are included in their budget). In this way, they will be able to meet their budgetary goals and receive the related benefits more easily. A more accurate estimate of budget performance for top managers will be difficult to come by. However, deviations may only be generated when the original design or specification is overstated.
• Authorization. It may be difficult to maintain track of budget items if there are no checks on management. As an alternative, managers may quarrel about budget duties and try to outsource spending to other managers rather than taking responsibility for their own expenses.