1. A new production manager would like to use cheaper materials in the production line, which he believes will increase the amount of scrap and rework but still reduce costs. In order to reflect the increase in scrap and rework, he decreases the number of finished goods to complete each work day. Once production employees become familiar with the requirements of the new materials, they do not strive to increase the number of finished goods produced near to the previous goal. Is this an example of setting budget goals too tightly, too loosely, or conflicting budget goals?