Management accounting 2022: How can budgeting create motivation? And how can it harm the company long term?

Question

How can budgeting create motivation? And how can it harm the company long term?

Hjalmer Pedersen · Accepted Answer

By having achievable targets so managers can actually achieve the targets. However,  this may cause managers to do things to achieve their budget that harm the company long term.

Management accounting 2022

How can budgeting create motivation? And how can it harm the company long term?

By having achievable targets so managers can actually achieve the targets. However, this may cause managers to do things to achieve their budget that harm the company long term.

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