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Budget bias(budgetary slack)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Budget bias(budgetary slack)

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarJohn Moffat.
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  • February 21, 2018 at 7:41 pm #438265
    Avatarhumai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    Sir there is a question in Kaplan Kit ,although it is not a past Acca exam question, discuss the consequences of Budget bias (budgetary slack) for cost control? For 6 marks.

    Sir this is neither covered in OT notes nor in studytext.

    February 22, 2018 at 8:18 am #438325
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    It certainly is mentioned in my lectures (the lectures on behavioural aspects)!

    With bottom-up budgeting, managers are likely to deliberately budget more costs than they really need. If this is allowed to pass into the final budgets then it is not controlling costs to the extent that it should.

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  • The topic ‘Budget bias(budgetary slack)’ is closed to new replies.

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