Question: 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

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.
a. Give at least two examples of myopic behavior that might be encouraged if there is an overemphasis on budgets as a performance measure.
b. Discuss ways to discourage or prevent myopic behavior in managers

Step by Step Solution

3.41 Rating (179 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a 1 Setting budgets that are either too high or too low If goals are too easily achieved ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

68-B-F-F-M (426).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!