The budget case | BBA 3620 – Managerial Accounting | Columbia Southern University

 

This case is designed to evaluate the budget process at a large manufacturing company.

The learning objectives of this case study are as follows:

  1. Use the budget to make decisions.
  2. Identify how budgeting is used by leadership for planning and control.
  3. Discuss ethical considerations in the budget process.

You have just been hired at ABC Manufacturing, and your supervisor has invited you to sit in on today’s budget meeting. You are given a copy of the following proposed budget for next year to review. The budget is being used by ABC to plan for next year. Your supervisor tells you right before the meeting, “We always overestimate because the president always makes us cut the budget by 20%, and besides, I really want to go to that conference in Las Vegas next year.” He continued,” I have really worked hard this year and put in a lot of overtime so I deserve it.”

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