It has been asserted that the practice of tying managerial rewards to budgeted performance has dysfunctional consequences. Explore and discuss the issue of the adverse incentive effects associated with traditional budgeting practices. Also, identify and discuss the different budgeting alternatives suggested in the existing literature to correct these negative consequences.

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What Does ZeroBased Budgeting Mean Zerobased budgeting ZBB is a method of budgeting in which allexpensesmust be justified for each new period The process of zerobased budgeting starts from a zero base ... View the full answer