Advanced

(a) Discuss the behavioural arguments for and against involving those members of manage¬ ment who are responsible for the implementa¬ tion of the budget in the annual budget setting process. (10 marks)

(b) Explain how the methods by which annual budgets are formulated might help to over¬ come behavioural factors likely to limit the efficiency and effectiveness of the budget.

(7 marks) (Total 17 marks)