A manager of any department is required to submit a budget for their department for the upcoming year so the company can properly allocate expenses and predict profitability. If a manager were to over or under budget their department it could potentially throw off the accounting books of a company. Having correct accounting books makes it viable for a company to progress forward and make changes in the company to be more profitable.
A manager of the waste treatment facility for the city of Columbus Park, Illinois is in the process of preparing an annual expense budget for the upcoming year. Her plan is to over budget the department on purpose in case additional costs occur. Her logic is that the city controller usually gives out less money than on the budget and with the potential for the budget to possibly be higher for the upcoming year; she knows she won’t get a promotion unless she stays within the budget.
I will calculate the estimated budget for the year and analyze if over budgeting her department is ethical. Ann Paxton is preparing an expense budget for the upcoming year that should look like this: Expenses: Variable Costs (9,000,000 gallons of waste X $. 20 per gallon)$1,800,000 Fixed Costs$1,400,000 Total Costs$3,200,000 Ann Paxton’s proposed Budget$3,900,000 As you can see Ann’s proposed budget is $700,000 more than she would need.
Considering a potential 500,000 gallons of additional waste would only cost the department $100,000 and a new labor contract would increase costs by $200,000, the additional $700,000 added to the budget by Ann seems to be over the top. A reasonable projected budget, all things considered, would be $3,500,000. This is by no means an ethical decision based on the information provided above. Ann’s only incentive for creating an expense budget that is more than needed is her promotion. She knows that if she does not meet her projected budget next year her chances of getting a promotion decline.
More so, her estimation of a new labor contact seems to be off base because the company will surely compensate the departments for the increase in labor costs since the new contract has not yet been finalized. Increasing the estimated gallons of waste would be ethical and would not increase the budget by a lot but her proposed budget is simply too high to be regarded an ethical decision. In conclusion, I would suggest that Ann only increases her budget based on the higher amount of gallons that would need to be processed and not because of future labor negotiations and job promotions.
Her proposed expense budget is surely unethical based on the fact that she is doing it to make sure she gets a promotion in the future. I would argue that proposing her budget would likely decrease her chances of a promotion even further than not meeting her budget because the company would find out an realize that she did it on purpose. Honesty in the workplace is a key to receiving promotions and seeking longevity in the success of the company.
Topic : Flexible BudgetingArticle Research Paper Instructions:Article Research Papers and Posting: This is a graduate course and students will be expected to research and write papers summarizing in their own words what they have found on current topics from the weekly readings. Research is a theoretical review of relevant literature and application of findings in the literature to a topic related to a specific industry, field, or business problem.
The research must be conducted using peer-reviewed trade or academic journals. While Blogs, Wikipedia, encyclopedias, course textbooks, popular magazines, newspaper articles, online websites, etc. are helpful for providing background information, these resources are NOT suitable resources for this research assignment.
Research/find a minimum at least four (4), preferably five (5) or more, different peer-reviewed articles on your topic The article(s) must be relevant and from a peer-reviewed source. While you may use relevant articles from any time frame, current/published within the last five (5) years are preferred. Using literature that is irrelevant or unrelated to the chosen topic will result in a point reduction.
Write a four (4) to five (5) page double spaced paper in APA format discussing the findings on your specific topic in your own words. Note – paper length does not include cover page, abstract, or references page(s).
Structure your paper as follows:Cover page
Overview describing the importance of the research topic to current business and professional practice in your own words
Review of the Literature summarized in your own words. Note that this should not be a “copy and paste” of literature content, nor should this section be substantially filled with direct quotes from the article. A literature review is a summary of the major points and findings of each of the selected articles (with appropriate citations). Direct quotations should be used sparingly. Normally, this will be the largest section of your paper (this is not a requirement; just a general observation).
Practical Application of the literature. Describe how your findings from the relevant research literature can shape, inform, and improve current business and professional practice related to your chosen topic.
Conclusion in your own words
References formatted according to APA style requirements
strictly No plagiarism, please
textbook for reference:Title: Managerial AccountingISBN: 9781260696233Authors: HiltonPublisher: MCGEdition: 12TH 20