A-LevelAccountingBudgeting and budgetary control9706/12 · Feb/Mar 2022 · Q301 Mark

What are possible limitations of a budgetary control system? 1 Budgets are based on estimates. 2 Budgets may lead to staff demotivation. 3 Budgets may prevent managers from being creative.

A1 and 2 only

B1 and 3 only

C1, 2 and 3

D2 and 3 only

✓ Correct answer

C: 1, 2 and 3

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Topic: Budgeting and budgetary control, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2022 Paper 1 Variant 2, question 30.

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