[anthony_yu]

About Budget

1. Explain three different reasons a manager might submit a budget estimate that is biased.

2. Provide two examples of how a manager might achieve his budget by methods that are harmful to the organization.

Thanks

[CaptainForest]

1)
Because he wants to keep his job.
Budgets show what a company thinks they are doing to do. If the mangers says we expect to lose 10,000,000 this year, will his job be secured? Probably not.

2)
Delaying the purchase of new equipment until the new year. This way, the big cost of purchase doesn't affect this years financials and bonuses, but rather next years. However, the company might NEED to the equipment now in its best interest.