Participative Budgeting in Mangerial Accounting

Essay specific features

 

Issue:

Business

 

Written by:

Holly H

 

Date added:

December 8, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1276

 

Was viewed:

2707 times

 

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Essay content:

Nearly two decades of management accounting research has resulted in equivocal findings on the consequences and effects of participative budgeting (Lindquist 1995). Participative budgeting certainly has various advantages, these include the transferral of information from subordinate to superior increased job satisfaction for the subordinate, budgetary responsibility and goal congruence...
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Its disadvantages include budgetary slack and negative motivation, however it is the conditions in which participative budgeting takes place determines whether the budgeting process is successful. The conditions are dependent on various factors such as the level of participation, level of subordinate influence, the extent to which budgetary slack takes place, volatility, job related information, and the complexity of the budget...
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