"A good control system places the blame for every unfavorable variance on someone in the organization. Without affixing blame, no one will take responsibility for cost control."
1. Do you agree? Should managers be automatically blamed when their budgets have an unfavorable variance?
2. We want a flexible budget because costs are difficult to predict. We need the flexibility to change budgeted costs as input prices change."
Does a flexible budget serve this purpose? Are flexible budgets ever changing or is there a very clear reason for why they 'flex'?
3. "Budgeting is an unnecessary burden on many mangers. It takes time away from important day-to-day problems."