• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

December 2025 ACCA Exam Results

Post comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2026 exams.
Get your discount code >>

Budgeting Question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Budgeting Question

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 14, 2015 at 1:00 pm #276305
    vapiano91
    Member
    • Topics: 26
    • Replies: 55
    • ☆☆

    In the BPP textbook there is a question:

    Setting low standards as targets for achievement should motivate employees because they should usually achieve or exceed the target. True/False?

    The answer is false.
    But i think the answer should either be insufficient information or True. Because if the incentives/ compensation plan is based on achieving that particular target and if the employees are relatively new, they will most certainly find it motivating to achieve a simple target- both to show their performance better and to earn a linear compensation. And if they are seasoned they will still take an easy target as a motive for earning easy bonus.
    Either ways it can motivate them to create slack resources where they purposely undermine the target to show better results or ‘take the bath’ to start afresh in the next budgeting cycle.

    Please help 🙂

    Regards

    October 14, 2015 at 6:31 pm #276333
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54809
    • ☆☆☆☆☆

    If employees are measured on whether they meet or exceed targets, then the idea is to motivate them to improve. If the target is too low and they can achieve the target easily, then they will not be motivated to work harder (which is what the business wants).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Naomi23 on The nature and structure of organisations – ACCA Paper BT
  • kevster2352 on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • nizullah@hotmail.com on Basic group structures – Introduction – ACCA Strategic Business Reporting (SBR) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • John Moffat on Double Entry Bookkeeping (part c) – ACCA Financial Accounting (FA) lectures

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in