Lesson 11 - Course Project 1 Essay Example | Topics and Well Written Essays - 1000 words

Lesson 11 - Course Project 1 - Essay ExampleAtkins and Granger progress liberal ingestion of this budget-making technique when making sales and phthisis projections.Budgetary slacks alleviate the effects of deviations if they occur. A more shifty use of the technique is to make it easier for managers to achieve targets, especially where sales performance results in bonuses and appraisals (Stevens 1).Budgetary slacks in sales and expenditure projections can adversely affect the staff the projections relate. In the case of Atkins and Granger, variegateed projections can result in less motivation to achieve more in their areas of responsibility as they can alter the figures to mete out the impression that they are performing beyond the projections. On another note, if the two staff can alter the financial figures at will, then there is serious risk of the pair falsifying account figures to coiffe selfish interests (Stevens 1).The Institute of Management Accountants (IMA) requires its members behave ethically, and in ways that are responsible, honest, fair, and objective (IMA 1). IMA categorically opposes the use of confidential learning for unethical and illegal motives. Overall, management accountants should cultivate restraint in situations that pose conflicting interests. IMA also requires that management accountants evade activities such as the budgetary slack that may jeopardize businesslike execution of some activities.A budgetary slack presents amble opportunities for information asymmetry (Stevens 1). For instance, Granger cannot ordain with certainty the actual sales figures because Atkins changes them before handing them over. On credibility, the IMA expects that management accountants disclose all relevant information that may influence the understanding, and use of the information (IMA 2). Modification of sales figures by Atkins adversely affects the ability by Granger to predict closing inventory levels, which is clearly unethical. In addit ion, Atkins