Participative budgeting, Corporate Finance

Assignment Help:

You are required to provide an essay or report of approx 500 words or less (excluding attachments and references),  accompanied by relevant calculations, in MS Word orPDF format accompanied by the Relevant Coversheet (provided). The style of your essay or report is not important provided your ideas, arguments and/or recommendations etc are clear and understandable and properly referenced using a accepted reference technique.

An effective budget converts the goals and objectives of an organization into data. The budget serves as a blueprint for management's plans. The budget is also the basis for control. Management performance can be evaluated by comparing actual results with the budget.

Thus, creating the budget is essential for the successful operation of an organization. Finding the resources to implement the budget - that is, moving from a starting point to the ultimate goal - requires the extensive use of human resources. How managers perceive their roles in the process of budgeting is important to the successful use of the budget as an effective tool for planning, communicating, and controlling.
 
Required:

Discuss the behavioural implications of planning and control when a company's management employs:

  • An imposed budgetary approach
  • A participative budgetary approach

 

Illustrate your discussion with reference to your report to Paulo Farmer in Part C, discussing how Paulo might respond to the various outcomes of Part C if the budget had been imposed and contrast that with how he might respond (if differently) had the budget been prepared using a participative budgetary approach.


Related Discussions:- Participative budgeting

Purchase, I purchased an answers document from your site 5 hours ago and it...

I purchased an answers document from your site 5 hours ago and it isn''t still delivered. It said that it would take up to 2 hours but it isn''t still delivered. When will it be de

INVESTMENT DECISION, You are a ceo of a sotware firm that has limited acces...

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

Determine the net present value-discount cash flows, Suppose GeKay Inc. has...

Suppose GeKay Inc. has a two-year lease over a small copper deposit; the government acquires all rights to the property at the end of the lease.  It is known that the deposit conta

Calculate the net present value, Here is the pro-forma income statement for...

Here is the pro-forma income statement for Semen Indonesia, an overseas venture that Cemex is planning to invest in.  In this exercise, you will need to evaluate the inve

Speculation and arbitraging in foreign exchange market, Question: a) U...

Question: a) Using illustrative and numerical examples, differentiate between speculation and arbitraging in the context of foreign exchange market. b) One year borrowing

Wacc, The cost of capital for a firm can differ from the cost of capital fo...

The cost of capital for a firm can differ from the cost of capital for each of its businesses. When a firm has multiple businesses, it is important to use the cost of capital appro

Stock Valuation, How much of your estimate of the value of Reeby’s stock co...

How much of your estimate of the value of Reeby’s stock comes from the present value of growth opportunities? Reeby''s mini case study.

Market-adjusted and two-factor models - event study, Market-Adjusted and Tw...

Market-Adjusted and Two-Factor Models - Event Study As mentioned previously, you can use several alternative models to calculate a security's expected return. The market-adjus

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd