A budget can have a significant impact on human behavior

A budget can have a significant impact on human behavior -...

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A budget can have a significant impact on human behavior. It may inspire a manager to higher levels of performance The advantages of participative budgeting are, first, that lower- level managers have more detailed knowledge of their specific area and thus are able to provide more accurate budgetary estimates. Second, when lower-level managers participate in the budgeting
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Unformatted text preview: process, they are more likely to perceive the resulting budget as fair. The overall goal is to reach agreement on a budget that the managers consider fair and achievable, but which also meets the corporate goals set by top management. Disadvantages: First, it is more time-consuming (and thus more costly)....
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This note was uploaded on 12/26/2011 for the course ACCOUNTING ac 202 taught by Professor - during the Fall '11 term at Montgomery.

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