Page 1 of 9

Behavioural Issues in Budgeting

Continues for 8 more pages »
Read full document

Behavioural Issues in Budgeting

Page 1 of 9
To : The Chief Executive
From : Management Accountant
Date : 19th January, 2012
To : The Chief Executive
From : Management Accountant
Date : 19th January, 2012
|
Behavioural issues which may limit the usefulness of budgeting:| |
Management Accounting|

|
Behavioural issues which may limit the usefulness of budgeting:| |
Management Accounting|

The university of northampton
By
Matthew Matemba
10347139
The university of northampton
By
Matthew Matemba
10347139

Table of Contents
1Part A:2
1.1Executive Summary:2
1.2Background:2
1.3Definition:2
2Purposes of Budget:2
3Budgetary Biasing Framework3
3.1Budget Slack (Bias)4
3.2Seat of Power:4
3.3Budget Gaming:4
3.4Gatekeepers:5
3.5Beating the System:5
3.6The Know-All:5
4Effects of Budgeting Slack (Bias):5
5Causes of Budget Slack:6
6Conclusion:6
7Part B:8
7.1Cash Budget:8
7.2Interpretaion of Cash Budget:9
8References:9
9Bibliography:11
10Appendices:12

Part A:
Executive Summary:
This report demonstrates behavioural issues which may limit the usefulness of budgeting in Langdale Ltd. Including in the report are origin, definition, purposes and types of budgeting. Prior to the above, the report shows different form of budgeting ‘padding’ causes of budgeting “slack” , researches and above all the control of aforementioned behaviours in organisations and three months cash budget for Duncan Distilleries plc. Background:

According to Dugdale and Lyne, the emergence of ‘Scientific Management’ in the 1920s, standard costing and public sector budgeting was established by the development of business organisations (2010, P. xi). Quickly, this development became budgetary control with a budget designed to compare estimated planning with actual result of performance in aid to identify any variance either favourable or adverse. Keuning (1997) suggested that, budgeting is...