OPPapers.com Essay Index >> Business >> The Role Of Participation In Budgeting
We have many free term papers and essays on The Role Of Participation In Budgeting. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
The Role of Participation in Budgeting The Role of Participation in Budgeting Introduction Although participation in budgeting may enforce the managerial performance,
company. He does not only focus in sales alone, yet he needs to set sales objectives, forecasting, budgeting, organizing and salesforce's recruitment. In order salesforce
financial and non-financial information about an organization. Budgeting plays a compounded role in financial operations because it is a concept used for planning
important the manager is perceived to be (Hilton, Langfield-Smith & Thorne 1998). Participative budgeting may result in slack budgets, but a lack of participation
Management accounting is performed inside organizations. It is the internal business-building role of accounting and finance professionals, who design, implement,
Submitted by wsddsl on June 16, 2005
Category: Business
Words: 2286 | Pages: 10
Views: 326
Popularity Rank: 41,673
Average Member Grade: N/A (Add a Comment / Grade this Paper)
The Role of Participation in Budgeting
Introduction
Although participation in budgeting may enforce the managerial performance, it has constrains and can cause some problems as well. This article analyses the possible advantages and limitations of the role of participation in budget setting. In the next section, the possible merits of budgetary participation are demonstrated. This is followed by a section that explains the equivocation existing in the relationship between budgetary participation and performance. Then, in the following section, some negative effects on the application of participation in budgeting progress are illustrated. The final section is the conclusion of the study.
The Possible Advantages of Budgetary Participation
According to the definition of budgeting, it is the ¡®estimation of all income and expenses for an accounting period or financial forecasting, planning, and controlling¡¯. (http://www.yourwebassistant.net/glossary/b11.htm#budgeting)
Comparing the budget with the real achievement of the company, it is possible to improve the decision-making process for the future development of the enterprise. So budgeting takes a crucial role in management accounting. Therefore, studying how to make budget setting more effective is important for the benefit of the enterprise.
Participation in budgeting is one of the useful approaches. It bears some possible advantages, which may enhance manager¡¯s commitment to budget objectives.
The following discussion (adapted from Lecture notes by Professor S. G. Ogden, 2004) bears the assumption that there is positive relationship between participation and performance. The contradictions will be discussed later in the following sections.
First of all, participation in budget setting can inspire the enthusiasm of the managers. Then they will intend to input more energy and time into the work to meet...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!