[试题]

3 Better budgeting in recent years may have been seen as a movement from ‘incremental budgeting’ to alternative

budgeting approaches.

H.owever, academic studies (e.g. Beyond Budgeting – Hope & Fraser) argue that the annual budget model may be

seen as (i) having a number of inherent weaknesses and (ii) acting as a barrier to the effective implementation of

alternative models for use in the accomplishment of strategic change.

Required:(a) Identify and comment on FIVE inherent weaknesses of the annual budget model irrespective of the budgeting

approach that is applied. (8 marks)

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