Response to the following problem:
Budget responsibility Bennia Judson, the controller of Mullins Industries, is very popular. He is easygoing and does not offend anybody. To develop the company's most recent budget, Mr. Judson first asked all department managers to prepare their own budgets. He then added together the totals from the department budgets to produce the company budget. When Lonnie Morgar, Mullins' president, reviewed the company budget, she sighed and asked, "Is our company a charitable organization?"
Required:
Write a brief memo describing deficiencies in the budgeting process and suggesting improvements.