Reference no: EM133360102

Research component: The managing director of the organization has realized that as the business is continually expanding, that the senior executive team have less specific knowledge of some of the operational departments of the firm. As the Management Accountant, you recognize that a more participatory approach to budgeting may assist the organization to create more accurate budgets. When you suggest this to the Senior Executive Team, they are somewhat cautious and are concerned that if they allow managers to have more input into their budget targets, they may 'pad the budget' and introduce 'budgetary slack'. Why managers pad the Budget with references 2 reasons with explanation.