At the recent finance committee, the Chief Operating Officer advised the marketing department that a 10 per

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At the recent finance committee, the Chief Operating Officer advised the marketing department that a 10 per cent increase in sales is expected for the coming year. The increase is to apply to all product lines.


Required
a. How would this directive impact on the preparation of next year’s budget?
b. What are the potential behavioural effects on employees from this directive?

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Accounting Business Reporting For Decision Making

ISBN: 9780730363415

6th Edition

Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver

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