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Dear Sir/Madam,
Could you please help me with this question?Since budgets affect many people in an organization, they can have significant behavioural implications. Allowing people to participate in setting their own budget targets may improve commitment those targets but create the incentive to build budgetary slack into budget estimates.
Required:
Explain three disadvantages of budgetary slack from the point of view of
A. The business unit managers who must achieve the budget
B. Corporate managementThank you
Kind regardsWhy are you attempting questions for which you do not have an answer? You should be using a Revision Kit from one of the ACCA approved publishers – they have answers and explanations.
I explain what is meant by budgetary slack and its implications in my free lectures. The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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