You work as a finance manager for LYA, which provides services for a range of clients who choose to outsource part of their operations. LYA carries out office cleaning, transportation services and runs call centres. You are part of a team which has been reviewing the budgeting process used and attempting to improve goal congruence within the organisation. You are preparing a presentation to your team to summarise the work you have been doing. Which THREE statements are correct and should be included in the presentation? Solution A.When actual results are compared to budget the business operation is being assessed not the managers responsible for it. B.Managers may cut costs in order to achieve targets but this may reduce the quality of service provided. C.If managers pad their budgets the control exercise is damaged. D.Controllable and uncontrollable costs must be identified. E.Adverse variances should result in managers being sanctioned, but there is no need to offer incentives to achieve positive variances