Question based on budgeting for financial planning

Assignment Help Corporate Finance

Reference no: EM1316380

Theory question based on budgeting for financial planning.

If budget performance is overemphasized, myopic behavior can occur where a manager takes actions that improve budgetary performance in the short run but cause long-run harm to the firm.

Required:

a. Give two examples of myopic behavior that might be encouraged if there is an overemphasis on budgets as a performance measure.

b. Identify and discuss the key features that a budgetary system should have to encourage managerial, goal-congruent behavior .

Reference no: EM1316380

Questions Cloud

What is the level of measurement for the variable : What is the level of measurement for the variable, "political ideology" measured as "Very Conservative", "Conservative","Moderate", "Liberal" and "Very Liberal".

Financial data using return on assets and return on equity : Computation of ratios for given financial data using Return on Assets and Return on Equity

Hypotheses test for mean of the population : Formulate the hypotheses to test to see if the mean of the population is at least 12 ounces.

Survey investigates either the proportion for employees : A state survey investigates either the proportion of 8percent for employees who commute by car to work is higher than it was five years ago.

Question based on budgeting for financial planning : Theory question based on budgeting for financial planning - Check and discuss the key features that a budgetary system should have to encourage managerial, goal-congruent behavior

Find the validity of following argument form : Find the validity of following argument form.

Aztec elasticity of demand for advertising : Aztec depends heavily on advertising to sell its products. Management at Aztec is allowed to spend $2 million monthly on advertising-What is Aztec's elasticity of demand for advertising?

Hypotheses to determine the perfect adjustment : Formulate the hypotheses to determine whether or not the lathe is in perfect adjustment.

Computation of ratios for given financial data''s : Computation of ratios for given financial data's using Interest Coverage Ratio and Profit Margin

User Account

All Pages