1. Summarise the ADVANTAGES and DISADVANTAGES of 'participatory budgeting' (Students should refer to and carefully consider the arguments both for and against these different approaches AND how to overcome some of the budget difficulties that may arise in budget setting using either approach.)
2. Outline the FOUR purposes of performance measurement systems. Explain how these purposes relate to RESPONSIBILITY ACCOUNTING.
3. Outline the characteristics of an effective performance management system.
4. Why is GOAL CONGRUENCE important to an organisation's success? How can a RESPONSIBILITY ACCOUNTING SYSTEM foster GOAL CONGRUENCE?
5. What is BUDGETARY SLACK and what does PADDING THE BUDGET mean? What motivations could managers have to behave this way and comment on whether you believe such behaviour is DYSFUNCTIONAL or to be expected?