Question: How would a company be affected by budget strategy based on personal goals (i.e. padding the budget to make short term operational results look good)

How would a company be affected by budget strategy based on personal goals (i.e. padding the budget to make short term operational results look good) rather than budgeting based on current and future market analysis? 



How might this affect sales dollars, sales volume, and profits? 



Consider the impact of these budgeting decision on the corporation's plans for future financing, production volume and capacity (both short term and long term).

Step by Step Solution

3.37 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

If a company adopts a budget strategy based on personal goals such as padding the budget to make shortterm operational results look good rather than b... 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

Students Have Also Explored These Related Accounting Questions!