Zero-Based Budget
Sally,
Let's say you worked many long hours preparing your operating budget projections. Satisfied that you covered all the bases, you submitted your report to your Vice President. A week later, you reviewed your calculations and found you grossly overstated your projections. What are the consequences of telling your VP? What are the consequences of if you don't tell your VP?
Reference:
Kimmel, Paul D. (2011) Accounting: Tools for Business Decision Making, (4th Ed). Hoboken, NJ: John Wiley & Sons.
What is your opinion on admitting errors in projections?