Case Study on Management Accounting

Added on - 21 Apr 2020

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Running head:MANAGEMENT ACCOUNTINGManagement AccountingUniversity NameStudent NameAuthors’ Note
2MANAGEMENT ACCOUNTINGBrief discussion of the situationEssentially, Participative budgets can be considered as a process of budgeting under whichspecific people influenced by a specific budget are actively engaged in the budget generationprocedure. Essentially, the bottom-up tactic to particularly budgeting has a propensity togenerate budgets that are more attainable that are top down budgets that are mainly imposedon corporation by mainly senior management. This involves mainly less participation bymembers of the staff of the corporation. This approach of budgeting is also apt for morale,and essentially has the propensity to result in higher efforts by members of the staff to attainwhat they forecasted in the budget. Nevertheless, a completely participative budget does notconsider high-level strategic concerns into account (Hashim et al., 2014). Therefore,management have the need to deliver members of the staff with specific guidelines as regardsoverall direction of the corporation, and the way the individual fits into the specific direction.As per the given case study, James Corporation that is headquartered in particularly Chicagonecessarily has a manufacturing plant situated in Dallas. In this case, plant managers intend topartake in diverse budgetary efforts of the company and that for the last 10 years have beenmanaged solely by top officials in Chicago. As such, the Dallas managers consider that bybecoming actively engaged, these managers can make enormous stride in terms of enhancingoperating performance of the aging facility (Almén, 2017).Benefits and problems of letting Dallas managers participate in the budgetary effortsParticipative budgets can necessarily make the plant managers realise that their viewpointsare appreciated by people in the top management. Essentially, the plant managers will alsohave an improved attitude towards achievement of the budget. In addition to this, it isprobable in this particular case that essentially the participative tactic will lead to a more
3MANAGEMENT ACCOUNTINGpractical budget document. Again, personnel of Chicago might also be separated from dailyoperations in Dallas in order to arrive at a true depiction of on-going functions (Im et al.,2014). These participatory budgeting efforts can facilitate the plant managers to voluntarilyand at the same time regularly contribute towards the process of decision making by means ofa series of scheduled meetings with corresponding government bodies and top executives ofthe firm.The case study on “Mutual Gain” can also help in understanding the advantages ofparticipatory budgeting(PB Network, 2017). As per reports declared by the PB Network,North Tyneside in association with MutualGain presented three different sessions formulatedto enable public to exert influence spending decisions on accessibility to urgent care services.In essence, the procedure utilized was necessarily a new commissioning edition of mainly thetried as well as tested mechanism of participatory budgeting (Nielsen et al., 2015). However,as part of the operation, officials from the corporation deliver simplified breakdown ofcomparative spend on offering present services, along with forecasting spend on probablefuture services(PB Network, 2017). This case study stresses the fact this participatorybudgeting allows all the members of specifically public, together with representatives fromdiverse providers as well as the programme board for mainly Urgent Care can formulate all toprovide their opinions on different variety of services and potential options for potentialcommissioning in the specific area, concentrated around actual and real life ideas as regardsbudget as well as future expenditure. Essentially, this procedure itself has need of acorporation to fully participate with the democratic procedure, with the success of thepractice depending upon higher level of transparency as well as regional ownership(Bromwich & Scapens, 2016).As such, the case study on Edge Fund suggests that participatory budgeting that can beutilized for making very small grants to diverse radical groups that would have struggled to
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