Establishing Budgeted Amounts

question 66

Essay

Establishing budgeted amounts
(a)The text discusses two basic philosophies as to the levels at which budgeted amounts should be set.Identify and describe briefly each of these two philosophies.
(b)Which of the two management philosophies would be more likely to elicit the following comment?
"At our company,budgeted revenue is set so high and budgeted costs so low that no department can ever meet the budget.This way,department managers can never relax;they are motivated to keep working harder no matter how well they are already doing."

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Definitions:

Culture Change

Refers to the dynamic process through which the customs, beliefs, art, and institutions of a society transform over time.

Male Dominance

A social, economic, and cultural pattern in which males hold primary power and predominate in roles of political leadership, moral authority, and control of property.

Descent Reckoning

A method of tracing kinship and lineage, either through patrilineal (father's line) or matrilineal (mother's line) descent.

Cultural Crisis

A situation in which there is a major disruption or challenge to the established norms, values, or identity of a cultural group.