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 x amount xxxx is xxx to xxxx of xxxxxxxxx where xxx budget xxx be xxxx or xxxxxxxx do xxx know xxx to xxxxxx money xxxxxxxx Using xxxxxx on xxx quality xxxxxxx useless xxxxxxxxx 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 use xx or xxxx it 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 x and xxxxxxxx As xx option xx this xxx it xx lose xx approach xx will xxxxxx our xxxxxxxxx funds xx the xxx of xxx fiscal xxxx only xxxxxxxxx projects xxxx add xxxxx to xxx company xxxxx from xxxx best xxxxxxxx for xxxxxxxx wasteful xxxxxxxx at xxx end xx the xxxx is xxxxx the xxxxxxxx to xxxxx your xxxxxx for xxxxx year xxxxx will xxxx you xx manage xxxx budget xxxxxxxx and xxxxxxxxxxx and xxx your xxxxxx cycle xx smooth xx they xxx various xxxxxxxxxx strategies xx reach xxxxxxx results xxxxxxxxxxxx a xxxxxxxxxxxxx solution xxxx not xxxx keeps xxxxx on xxx company 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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