Traditional Budgeting: Why they should be discarded in practice

Budget control can be categorized as a form of management accounting that has encountered various changes; both in theoretical representation and in practice. Budgeting comprises of coming up with standards that either an organization or an individual can utilize as as a benchmark to measure with actual performance. Budgeting is significant to an organization or an individual since a budget occurs as useful in terms of self-regulation, evaluation, and measuring the results against the set standards. Budget control comprises all these. On the other hand, efficiency of capital markets duels on the accuracy and availability of information on securities and the respective prices. The market assumes that every buyer and seller has got full knowledge in regard to shares availability and the prevailing market price. Also, the trader should have knowledge of any other useful, applicable fact. For instance, chances of the issuer repaying the debt as promised, the past behavior of the said ...