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How would a company be affected by a budget strategy based on personal goals (i.e., padding the budget to make short-term operational results look good)

How would a company be affected by a budget strategy based on personal goals (i.e., padding the budget to make short-term operational results look good) rather than budgeting based on current and future market analysis?

  • How might this affect sales dollars, sales volume, and profits?
  • Consider the impact of this budgeting decision on the corporation's plans for future financing, production volume, and capacity (both short-term and long-term).

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