Management Applications of Accounting Unit 6 Budget Case

Instructions

The Budget Case

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This case is designed to evaluate the budget process at a large manufacturing company.

The learning objectives of this case study are as follows:

Use the budget to make decisions.
Identify how budgeting is used by leadership for planning and control.

Discuss ethical considerations in the budget process.

You have just been hired at ABC Manufacturing, and your supervisor has invited you to sit in on today’s budget meeting. You are given a copy of the following proposed budget for next year to review. The budget is being used by ABC to plan for next year. Your supervisor tells you right before the meeting, “We always overestimate because the president always makes us cut the budget by 20%, and besides, I really want to go to that conference in Las Vegas next year.” He continued,” I have really worked hard this year and put in a lot of overtime so I deserve it.”

Prepare a one- to two-page written report by addressing the following tasks:

Discuss if you think ABC Manufacturing is properly using the budget process to plan for next year’s expenses.

Discuss the comment about the president cutting the budget each year in terms of proper leadership and control?

Discuss the ethical issues related to inflating the budget.

Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

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