Major reason for introducing budgetary control

Reference no: EM131130057

The major reason for introducing budgetary control and standard costing systems is to influence human behaviour and to motivate the managers to achieve the goals of the organization. However, the accounting literature provides many illustrations of accounting control systems that fail to give sufficient attention to influencing human behaviour towards the achievement of organization goals.'

You are required:

(a) To identify and discuss four situations where accounting control systems might not motivate desirable behaviour.

(b) To briefly discuss the improvements you would suggest in order to ensure that some of the dysfunctional behavioural consequences of accounting control systems are avoided.

Reference no: EM131130057

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