Helen Auger Has Seen the Centicle Group,a Not-For-Profit,in-Home Health Care

question 128

Essay

Helen Auger has seen the Centicle Group,a not-for-profit,in-home health care organization,grow during the past ten years to a $500 million revenue,multi-state organization.Helen was promoted to her controller position six months ago,after serving capably in several financial accounting positions at the Centicle Group.
At a Budget Review Committee meeting last Friday,several committee members expressed frustration with the pace of the budget development.They described the newly introduced "bottom up" system of participative budgeting as "unwieldy," "slow-paced," and "repetitive." Helen's objective in introducing the participative approach was to involve to a much greater extent lower level supervisors and employees.Helen is meeting with the Budget Review Committee again tomorrow when she plans to explain the advantages of "bottom up" versus "top down" approaches to the budgeting process.
Required: Helen has asked you to help her prepare for tomorrow's meeting by preparing the following:
(a)A 40 -50 word description of participative budgeting,including some basic advantages of this approach to budgeting.
(b)A brief,one-paragraph explanation of the concept of "budget ownership," one of the values that participative ("bottom up")budgeting is said to have.

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Definitions:

Plus Four Estimate

A technique used in calculating confidence intervals for proportions where four is added to the number of successes and failures each before calculating the proportion.

Autoxidation

A process involving the oxidation of substances by atmospheric oxygen, often leading to gradual degradation.

Dibenzyl Ether

An organic compound consisting of two benzyl groups connected by an ether linkage, used as a fragrance and flavoring agent.

Diethyl Ether

A highly volatile, flammable organic compound used as a solvent and once popular as an anesthetic, with a characteristic ether smell.