What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?

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A self-imposed budget is a type of budget created with the complete involvement and support of all levels of management. There are several advantages of a self-imposed budget for all areas of the organization. For example, due to the involvement of employees from all levels, it is possible to establish the feeling of the value of everybody’s opinions and judgments.

Moreover, a self-imposed budget will lead to more motivation in the team since individuals will be given full autonomy when it comes to goals. Nevertheless, caution must be exercised, such as supervising self-imposed budgets by top management-level employees to avoid budgetary slack.

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Academic.Tips. (2023) 'What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use'. 10 May.

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Academic.Tips. (2023, May 10). What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use? https://academic.tips/question/what-is-a-self-imposed-budget-what-are-the-major-advantages-of-self-imposed-budgets-what-caution-must-be-exercised-in-their-use/

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Academic.Tips. 2023. "What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?" May 10, 2023. https://academic.tips/question/what-is-a-self-imposed-budget-what-are-the-major-advantages-of-self-imposed-budgets-what-caution-must-be-exercised-in-their-use/.

1. Academic.Tips. "What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?" May 10, 2023. https://academic.tips/question/what-is-a-self-imposed-budget-what-are-the-major-advantages-of-self-imposed-budgets-what-caution-must-be-exercised-in-their-use/.

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Academic.Tips. "What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?" May 10, 2023. https://academic.tips/question/what-is-a-self-imposed-budget-what-are-the-major-advantages-of-self-imposed-budgets-what-caution-must-be-exercised-in-their-use/.

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"What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?" Academic.Tips, 10 May 2023, academic.tips/question/what-is-a-self-imposed-budget-what-are-the-major-advantages-of-self-imposed-budgets-what-caution-must-be-exercised-in-their-use/.

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