Buy custom Participative Budgeting in Mangerial Accounting
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1276 |
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Many managers intentionally pad out the budgets because they believe that it is likely to be reduced regardless, and therefore it is better to overestimate than be accurate. Conversely most superiors cut budgets because they believe that most budgets are padded (Hilton 1994).
Budgets may also be padded out because of the belief that the bigger the budget the more important the manager is perceived to be (Hilton, Langfield-Smith & Thorne 1998)...
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Conversely most superiors cut budgets because they believe that most budgets are padded (Hilton 1994).
Budgets may also be padded out because of the belief that the bigger the budget the more important the manager is perceived to be (Hilton, Langfield-Smith & Thorne 1998). Participative budgeting may result in slack budgets, but a lack of participation may result in budgets that provide subordinates with inadequate resources to perform well...
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General points of the essay
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