Week 6 Discussion

“Flexible Budgets”

  • Use the Internet and/or Strayer Library to research rolling forecasts as an alternative to budgets. Next, take a position as to whether or not a flexible budget approach dilutes the value of a budget process in the organization. Provide a rationale for your position.
  • Evaluate the impact to a business when compensation, such as sales commissions and bonuses, are tied to achieving budgeted expectations. Suggest two (2) actions that management can take in order to prevent employees from manipulating results.

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