Problem
How would a company be affected by a budget strategy based on personal goals (i.e., padding the budget to make short-term operational results look good) rather than budgeting based on current and future market analysis?
1) How might this affect sales dollars, sales volume, and profits?
2) Consider the impact of this budgeting decision on the corporation's plans for future financing, production volume, and capacity (both short-term and long-term).