Question: The owner of a tree nursery analyzes her business s results
The owner of a tree nursery analyzes her business’s results by comparing actual operating results with figures budgeted at the beginning of the year. When the business generates large profits, she often overlooks the differences between actual and budgeted data. But when profits are low, she spends many hours analyzing the differences. If you owned the business, would you use her approach to budgetary control? If not, what changes would you make?
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