Question.3219 - The budgeting process and budgets themselves have significant impacts on management actions and performance, in both positive and negative ways. It is common at many local, state, or national governmental agencies, and nonprofit organizations, and even in some for-profit enterprises for managers to increase spending at the end of the budget cycle. This process, usually referred to as “use it or lose it" can be harmful to objectives of any organization. Managers do this, as they often feel that if they don't spend the amount that was budgeted this year, next year their supervisors will reduce their budget by the amount not spent in the current year. So, to avoid having their budget dollars reduced, managers often increase spending at the end of the year to ensure all budgeted amounts are spent even if items are not necessarily needed. This is more common in government and nonprofit organizations, but can be found in for-profit enterprises as well. Requirement: Write a memo to the budget managers in an organization, assuming you are the CEO. Your memo should direct budget managers not to utilize this approach, but also offer a logical rationale, and perhaps an alternative solution.
Answer Below:
To xxxxxx Managers xxxx CEO xxxx March xxxxxxx Budget xxxxxxxxxxx It xxx come xx my xxxxxxxxx that xxxxxxxxx speaking xxxxxxxxxxxxx tend xx spend xxxxx expiring xxxxxx on xxxxxxxxxxx items xx an xxxxxx to xxxxx a xxxxxxxx in xxx following xxxx budget xxxxx s xxxxxx This xx due xx lack xx knowledge xxxxx the xxxxxx can xx used xx managers xx not xxxx how xx manage xxxxx properly xxxxx budget xx low xxxxxxx project xxxxxxx equipment xxxxx s xxxxxxxx leads xx loss xx money xxx manpower xxxx leading xx disturbances xx an xxxxxxxxxxxx It xx not xxx right xxxxxxxx and x personally xxx prefer xxxx my xxxxxxxx adopt xxxx approach xx ldquo xxx it xx lose xx rdquo xxxx type xx practices xxxxx the xxxxx message xxxxxx our xxxxxxxxxxxx and xxx lead xx a xxxxxxx in xxx productivity xxx quality xxxxxxxxx I xxxxxxxxxx do xxx condone xxx will xxx allow xxxx type xx wasteful xxxxxxxxxxxx To xxxxx this xxxx of xxxxxxxx it xx better xx either xxxx policy xx keeping xxx extra xxxxxx in xxxxxxx for xxx emergency xx to xxx it xx better xxxxx rather xxxx using xx in xxx quality xxxxxxxx or xxxxxxx equipment xxxxx s xxx services xx an xxxxxx to xxxx ldquo xxx it xx lose xx rdquo xxxxxxxx we xxxx invest xxx remaining xxxxx at xxx end xx the xxxxxx year xxxx necessary xxxxxxxx that xxx value xx our xxxxxxx Apart xxxx this xxxx solution xxx avoiding xxxxxxxx spending xx the xxx of xxx year xx using xxx software xx audit xxxx budget xxx whole xxxx which xxxx help xxx to xxxxxx your xxxxxx properly xxx responsibly xxx let xxxx budget xxxxx go xxxxxx as xxxx use xxxxxxx accounting xxxxxxxxxx to xxxxx desired xxxxxxx Implementing x technological xxxxxxxx that xxx only xxxxx track xx our xxxxxxx rsquo x budget xxx most xxxxxxxxxxx it xxxxxx our xxxxxxxxxxxx throughout xxxxxxx This xxxxxxx will xxxxxxxx a xxxxxx and xxxxxxxxxxx spending xxxxxxxxx among xxx employees xxxxx keeping xx focused xx our xxxxxxxx strategies xxxxxx of xxxxx forward xxx also xx implemented xx the xxxxxxxxxxxx so xxxx the xxxxxx amount xx budget xxxx can xx carried xxxxxxx for xxxx year xxx can xx used xx next xxxx on xxxx important xxxxxxxx rather xxxx wasteful xxxxxxxx of xx here xxx there xxxx this xxx help xxx to xxxx better xxxxxxxxx and xx prepare x better xxxxxxxxx processMore Articles From Accounting
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