The necessity for constantly increasing efficiency is a basic fact of business life. Budgets are utilised as
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‘The necessity for constantly increasing efficiency is a basic fact of business life.
Budgets are utilised as pressure devices for that purpose. But because of the effect of budgets on people, they tend to generate forces which in the long run decrease efficency’ (Argyris, 1953). Explain the ways in which budgets can in the long run decrease efficiency and examine how management can prevent this occurring.
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Management Accounting Principles And Applications
ISBN: 9781412908436
1st Edition
Authors: Hugh Coombs, D Ellis Jenkins, David Hobbs
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