Managerial Accounting

Behavioral Implications of Participative Budgeting : In case of a participatory budgeting method, the top management is informed of the perspective from the lower levels. Budgets need not be created using historical data, instead, estimates that the area managers are more knowledgeable about might be included as inputs. Budget decisions would be well-informed thanks to this expertise. However, there is a chance that the financial process may not give the strategic goals top priority. This type of budgeting creates a sense of responsibility among employees. This type of budgeting helps the top management in finding out the the problems faced by the bottom level employees & also employees can understand their top level managers in handling various problems. In participatory budgeting the employees set their goals & try harder to meet them. Tài liệu giúp bạn tham khảo, ôn tập và đạt kết quả cao. Mời bạn đón xem.