Question 1

Budgeting is the process by which management allocates corporate resources. Management is entrusted with making the allocations that will best help the organization meet its goals. Organizations usually number of different budgets with input from participants at all levels, cumulating in a comprehensive or master budget.

Consider the following potential situations that could occur:

goals are set too tightly

goals are set too loosely

goals are conflicting

For each situation

a)give an example of such a situation,

b)explain the implications of the situation, and

c)provide possible ways to resolve the situation.