Behavioural Issues in Budgeting
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 1 Part A: 2 1.1 Executive Summary: 2 1.2 Background: 2 1.3 Definition: 2 2 Purposes of Budget: 2 3 Budgetary Biasing Framework 3 3.1 Budget Slack (Bias) 4 3.2 Seat of Power: 4 3.3 Budget Gaming: 4 3.4 Gatekeepers: 5 3.5 Beating the System: 5 3.6 The Know-All: 5 4 Effects of Budgeting Slack (Bias): 5 5 Causes of Budget Slack: 6 6 Conclusion: 6 7 Part B: 8 7.1 Cash Budget: 8 7.2 Interpretaion of Cash Budget: 9 8 References: 9 9 Bibliography: 11 10 Appendices: 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
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 1 Part A: 2 1.1 Executive Summary: 2 1.2 Background: 2 1.3 Definition: 2 2 Purposes of Budget: 2 3 Budgetary Biasing Framework 3 3.1 Budget Slack (Bias) 4 3.2 Seat of Power: 4 3.3 Budget Gaming: 4 3.4 Gatekeepers: 5 3.5 Beating the System: 5 3.6 The Know-All: 5 4 Effects of Budgeting Slack (Bias): 5 5 Causes of Budget Slack: 6 6 Conclusion: 6 7 Part B: 8 7.1 Cash Budget: 8 7.2 Interpretaion of Cash Budget: 9 8 References: 9 9 Bibliography: 11 10 Appendices: 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
References: BPP Learning Media, 2007. Advance Performance Management. 1st ed. London: BPP Learning Media Ltd. BPP, 2005. Management Accounting - Performance Evaluation. 2nd ed. London: BPP Professional Education. Dugdale,D.& Lyne, S., 2010. Budgeting Practice and Organisation structure, Oxford: s.n. Hannagan, T., 2008. Management Concept & Practices. In: 5, ed. Management Concept & Practices. Harlow. Essex: Pearson Education Limited, p. 560. Hopwood, A., 1972. An Empirical Study of the Role of Accounting Data in Performance Evaluation. [Online], vol. 10, pp. 156-182. Available from: http:/www.jstor.org/stable/248970 [Accessed 10 December 2011]. Keuning, D., 1997. Management A Contemporary Approach. London: Pitman Publishing. Michael, A., 2007. Beyound Budgeting. [Online] . Available from: www.cimaglobal.com [Accessed 10 November 2011]. Tan, J. & Peng, M., 2003. The Role of Organizational Slack: Theory and Evidence. [Online], vol.24, pp. 1251-1252. Available from: http://www.utdallas.edu [Accessed 10 December 2011]. Walker, J., 2004. Home. [Online] .Available from: http://maaw.info/ArticleSummaries/ArtSumWalkerJohnson99.htm [Accessed 27 November 2011]. Bibliography: BPP Learning Media, 2007 BPP, 2005. Management Accounting - Performance Evaluation. 2nd ed. London: BPP Professional Education. Dugdale , D. & Lyne, S., 2010. Budgeting Practice and Organisation structure, Oxford: s.n. Hannagan, T., 2008. Management Concept & Practices. In: 5, ed. Management Concept & Practices. Harlow. Essex: Pearson Education Limited, p. 560. Hopwood, A., 1972. An Empirical Study of the Role of Accounting Data in Performance Evaluation. [Online] Available from: http:/www.jstor.org/stable/248970 Keuning, D., 1997. Management A Contemporary Approach. London: Pitman Publishing. MAAW, 2004. Home. [Online] Available from: http://maaw.info/ArticleSummaries/ArtSumVanderStede2000.htm Michael, A., 2007. Beyound Budgeting. [Online] Available from: www.cimaglobal.com Scarlett, R., 2009. Performance Operations. Oxford: Cima Publishing. Tan, J. & Peng, M., 2003. The Role of Organizational Slack: Theory and Evidence. [Online] Available from: http://www.utdallas.edu Walker, J., 2004. Home. [Online] Available from: http://maaw.info/ArticleSummaries/ArtSumWalkerJohnson99.htm