Is an example of setting budget goals too tightly

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Problem 1: For 2021, RPC Corporation would like to increase total sales. The CEO believes that increasing sales of its new product, the CleanPro, will increase customer satisfaction and loyalty for the brand name. To achieve the company's goal, managers will receive incentives once sales of the CleanPro reach certain levels. However, when attempting to meet goals of sales of the CleanPro, sales of the Miracle Clean decline, and total sales actually decrease for the year. Is this an example of setting budget goals too tightly, too loosely, or conflicting budget goals?

Reference no: EM132984141

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