One of the reasons might be the man

One of the reasons might be the managers reluctant to budgeting is because budgeting is an estimation or expectation of revenue and expenses for future period. This may restrict the managers to make decision as they have to concern about the estimated value. If the actual results are too far apart from the budget, managers will need to provide reasons. In addition, budgeting will be inaccuracy in certain circumstances such as economic turndowns. A budget is based on the assumptions that are generally not too far distant from the operating conditions under which it was formulated. If the business environment changes to any significant degree, then the company’s revenues or cost structure may change and causes the actual results will rapidly depart from the expectations delineated in the budget.