One of the behavioral considerations associated with the budgeting process relates to the difficulty level embodied in the budget (i.e., how difficult or easy it is to achieve budgeted results).

Required:

a)Explain the negative consequences of budgetary targets that are too easy or too difficult to achieve. (8 marks)

b)What is meant by the term "highly achievable (budget) target"? (4 marks)

c)What are the primary advantages of using "highly achievable targets" in terms of budgetary expectations? (7 marks)

d)Discuss some major differences between static and flexible budgets. (6 marks)

Answer rating: 100% (QA)

a Negative consequences of budgetary targets that are too easy or too difficult to achieve include Too Easy Targets When targets are too easy it can lead to complacency and lack of motivation among em... View the full answer