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Budgeting could influence the behaviour of the managers and employees in a business organisation. For example, they might propose a target or estimate which does

Budgeting could influence the behaviour of the managers and employees in a business organisation. For example, they might propose a target or estimate which does not reflect their capability appropriately.

Provide 2 possible reasons why a manager might submit a biased favourable budget estimate.

State 2 points how a company guard against this?

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