Abigail Morales Budget Ethics Written Assignment

docx

School

The Osceola County School for the Arts *

*We aren’t endorsed by this school

Course

2023

Subject

Management

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by amorales1222

Budget Ethics Written Assignment 1. Fred and Danielle are obviously including slack in their budgets. Explain why they are doing this and what benefits they expect to receive as a result of using budgetary slack. Fred and Danielle seem to be including budgetary slack into their budget because the current year’s budget does not seem to be a very reliable starting point since the sales projections are inaccurate. Some of the benefits that may be obtained as a result of using budgetary slack would include employees being able to hedge in opposition to the unexpected, such as uncertainty or risk. Also, employees would be able to go beyond expectations and show positive constant performance. This is primarily important when work performance is calculated on the strength of actual results over budget. And another benefit would be allowing employees the capability to merge organizational and personal goals as fine performance could lead to increase in salaries, promotions, and additional benefits via the utilization of a budgetary slack. 2. How can the use of budgetary slack adversely affect Fred and Danielle? Fred and Danielle could be affected by making use of budgetary slack because it could limit the effectiveness of a budget that would encourage the staff reach a goal and demonstrate their best performance. It could also affect the workers’ ability to recognize trouble areas that require suitable remedial action and reduce their credibility in view of management. The use of budgetary slack may also affect the managerial decision making as budgets will be showing a lesser contribution, such as low sales and high expenses.

3. Stephen is concerned that the actions described may be unethical. Read the IMA’s Statement of Ethical Professional Practice (attached below). Based on the Statement, do you agree with Stephen? Use what you read to help explain why you do or do not agree. Based on the principles found in the Statement of Ethical Professional Practice that included competence, confidentiality, integrity, and credibility, it seems as though Thomas and Peterson don’t see eye to eye when it comes to sales projections. Thomas sees it as a challenge to estimate the ending inventory based on the current year’s budget seeing as how Peterson makes adjustments before passing them along that they both haven’t come to an agreeance upon. The actions taking place between Peterson and Thomas do not show proper use of the ethical principles and standards since as leaders they are not demonstrating professionalism with competence, aren’t properly monitoring compliance regarding confidential information, and lack regular communication which is presenting a conflict of interest. So, I would agree with Stephen. The actions do seem to be unethical.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

Mini case.docx

Diversity and Leadership Expertise .docx

Essay Lesson 7 mgt.docx

PS3-IC1 Dariel Gracia.docx

CLV HW example(1).docx

Conflict & Leadership Artifact.docx

Pizza Depot.pdf

CHCLEG003 legal Q& Answers.docx

quiz 9.docx

Michae West Case Study.docx

quiz 13.docx

LEAD 601 Practice Case Study Suggested Responses (1).docx

Recommended textbooks for you

Understanding Management (MindTap Course List)

Management

ISBN:9781305502215

Author:Richard L. Daft, Dorothy Marcic

Publisher:Cengage Learning

Foundations of Business (MindTap Course List)

Marketing

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Understanding Management (MindTap Course List)
Management
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning