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This has several reasons but the most important reasons is because companies use budgets in their performance evaluation. This causes gaming by the employees and this also causes the large amount of time needed to complete the budgets. Due the these two facts the budgets are not very effective anymore in the planning and control process and therefore are considered bad. Next to the fact that the budgets are used for performance evaluation they are also outdated. The traditional budgeting process has been developed in the 1920's when the economy was fairly stable. Now, however, we are living in a fast moving world and therefore the budgeting process needs to be more flexible...
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