Discussion Question: Why should the production requirements set forth in the production budget be carefully coordinated with the sales budget? What is participative budgeting? Discuss some of its advantages. Why is it important for a manager to receive frequent feedback on his or her performance?
Ethics Case: GoFundMe Hoax
After reading the scandal below, share your thoughts about the scandal and what you think the ethical issues in this case are from the perspective of an accountant. Primeaux, E. (2020). Fraud Magazine. https://www.fraud-magazine.com/recap-article19.aspx?id=4295009428 (Links to an external site.)
Student 1: Hello everyone!Production budget must be carefully coordinated with sales budget because if it is not coordinated then it may lead to excess or under production. Where excess production may lead to increase of storage costs or export of products and under production may lead to loss in consumers due to inability to cope up with demand.Participating budget as the name implies involves employees who are related to such a budget like production supervisor or manager while designing budget apart from top management.Advantages of participating budget:1) The targets will be more achievable and practical.2)Flow of information from the bottom level will give management an idea for problems at the lower level.3) Active participation increases job satisfaction of the sub-bottom level employees.It is very important for the manager to get feedback as his performance is dependent on his team and hence such feedback helps him to find where they are lagging behind and improve that area.In regards to the scam, when it comes to GoFundMe I always tell people to look at the source and research the motive. If the page comes from someone you know then you can definitely help them, but the problem comes when people like this take advantage of the platform for their own benefit. Again we see greed take the best of people without any remorse to what the consequences are, let’s also remember that a lot of the people that donate on platforms like this are very sensitive to sob stories and what they donate sometimes is all they really have.Student 2: the production budget should be coordinated with the sales budget because it could lead to under or an excess of production. An increase of the storage costs can be a result from the excess production while under production can end up in the firm losing customers as they cannot keep up with demand.Participative budgets involve any employee that would be related to the bushes like a manger or even the production supervisor. The advantages are that any active participating would increase the satisfaction of the lower level employees. Another advantage is that the targets are not only more practical but more achievable.It would be important for the manager to get feedback as their performance would be depending on the team. Any feedback would assist in finding where they lack so that they can do better for the future.As far as the GoFundMe hoax, it is really wrong that thousands of people were fooled into sending money. Homelessness is a real issue in our country and the fact that people are willing to exploit that just to make money is disappointing. This is unethical as it is deceiving anyone that thinks they are helping a homeless man, meanwhile, they are helping a random couple that is not struggling with homelessness live lavishly.Just reply to each student simple
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