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This method does not work or otherwise there would not be problems in achieving the budget, sales below target, or having departments fight over the budget being wrong and how much more money that they can get.
This is establishing goals that are not obtainable and the entire department should be able to give their input. BY giving their input it will allow for a better created budget.
(b) Suggest how Peters Corporation’s budgeting process could be revised to correct the problems.
In developing the budget, each level of management should be invited to participate. This "bottom-to-top" approach is referred to as participative budgeting...
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