As noted in the chapter, some individuals allege that the practice of tying managerial rewards to budgeted

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As noted in the chapter, some individuals allege that the practice of tying managerial rewards to budgeted performance has dysfunctional consequences, including (but not limited to) gaming behavior. Search the Internet and pertinent literature (e.g., Michael C. Jensen, “Corporate Budgeting Is Broken—Let’s Fix It,” Harvard Business Review, November 2001, pp. 94–101) to further explore the issue of negative incentive effects associated with traditional budgeting practices. What alternatives are suggested to correct these negative consequences?

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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