Stuart's Electronics Is a Relatively Small Company That Provides Computer-Assisted

question 132

Essay

Stuart's Electronics is a relatively small company that provides computer-assisted technology to manufacturing companies.During the last few years,the company has begun to take budgeting seriously.Each year,the budget is developed during a two-day retreat of the company's top management.Lower-level employees say that the budget reflects unrealistic targets that they cannot meet even with their best efforts.What problems are there with Stevenson's budgeting process,and what can be done about them?

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Definitions:

Total Mix Standard

A principle suggesting that information should be judged in its entirety, considering all contributions to the overall understanding or decision.

Scienter

A legal term denoting knowledge on the part of a person who commits a wrongful act, especially in securities law, where it involves knowledge of the act's deceitful or fraudulent nature.

Malpractice Action

A legal action filed against a professional person for failure to act in accordance with prevailing professional standards.

Properly Perform

To execute or carry out a task or duty correctly, efficiently, and up to the expected standards or specifications.