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‘Budgeting is too often looked on from a purely mechanistic viewpoint. The human factors in budgeting are more important than the accounting techniques. The success of a budgetary system depends on the acceptance by the company members who are affected by the budgets.’


Critically discuss the validity of the above statement from the viewpoint of both the planning and control aspects of budgeting. In your discussion, present at least one practical illustration to support your conclusions.


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