- 5 Marks
MA – Dec 2023 – L2 – Q4b – Budgetary control
This question explains programme-based budgeting and outlines the disadvantages of line-item budgeting.
Question
Slay Mama Plc (SMP) has been using line-item budgeting since its establishment. The Chief Executive Officer (CEO) recently attended a seminar on “Achieving the best out of your budget”. During the seminar, the facilitator highlighted the benefits of programme-based budgeting since it is a performance-based budgeting approach.
Required:
i) Explain Programme-Based Budgeting. (2 marks)
ii) Outline THREE (3) disadvantages of line-item budgeting. (3 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Budget Management, Budgeting, Line-Item Budgeting, Programme-Based Budgeting
- Level: Level 2
- Topic: Budgetary control
- Series: DEC 2023
