Discussion Question
12
Include sources and examples to illustrate your understanding of the material.
1. The CEO of BodyShack Equipment Company told a colleague, “I do not understand why other companies waste so much time in the budgeting process. I set our company goals, and everyone strives to meet them. What’s wrong with using that approach?” Share your comments and thoughts on the CEO’s remarks.
2. Moon Corporation has established a bonus plan for its employees. An employee receives a bonus if his or her department meets the cost levels specified in the annual budget plan. If the department's cost exceeds the budget, its employees earn no bonus. What issues might arise with this type of plan? Is this a good idea? Explain.