Question: Question three (I'utal mark: 4 marks word limit: 400 words] One of the main functions of budgets is evaluating performance. In this evaluation role, budgets

 Question three ("I'utal mark: 4 marks word limit: 400 words] One
of the main functions of budgets is evaluating performance. In this evaluation

Question three ("I'utal mark: 4 marks word limit: 400 words] One of the main functions of budgets is evaluating performance. In this evaluation role, budgets serve as a useful standard of measurement. However, if budget performance is overemphasized when evaluating managers' performance, the managers might take undesirable actions such as padding the budget. Required: Identif}r four undesirable actions {other than padding the budget) that managers might take as a result of an overemphasis on budgets as a performance measure. Briefly),r explain how each action you have identified affects the long-term performance. {4 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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!