You have accepted a job as budget director for the Ace Manufacturing Company. As part of your orientation program, you receive the following organization chart:

The treasurer calls you into his office for a confidential discussion. He informs you of rumors that he will be selected to succeed the retiring president. You decide not to tell the treasurer that no one else has informed you of such rumors.
Later, you visit the president. He stresses how important he believes budgets are to the company and has decided that you should report directly to him. When you ask the president for a copy of the budget procedures, he explains that such manuals are not necessary. Instead he is confident that you can initiate and handle all budgeting matters with your staff authority.
Required:
What problems with the organizational structure does the company face? What potential problems do you see in your new job as budget director? What solution to these problems would you suggest?

Transcribed Image Text:

President Vice President Manufacturing Treasurer Controller Vice President Marketing Cash Management Accounts Internal Budgets Receivable Auditor