Discussion: "Flexible Budgets"
Please respond to the following:
• Use the Internet to research folling forecasts as an alternative to budgets. Next, take a position at to whether or not a flexible budget approach dilutes the value of a budget process in the organization. Provide a rationale for your position.
• Evaluate the impact to a business when compensation, such as sales commissions and bonuses, are tied to achieving budgeted expectations. Suggest two actions that management can take in order to prevent employees from manipulating results.
Please watch this Youtube Video on "Flexible Budget" to guide your understanding of our week topic.
https://www.youtube.com/watch?v=JHVaey2WdPE