Management accounting & control
The many faces of beyond budgeting
Groot, prof.dr. T.L.C.M.
MCA, 2007
The overall effects of budgeting are far from clear. Budgeting supports planning and control. Budgeting however also has major disadvantages and disfunctions, like hindering change and stimulating preverted misreporting. The Beyond Budgeting movement advocates the replacement of budgeting by an alternative, more coherent management model. Current research indicates that successful firms do use more strategy-related target setting processes, but without abolishing budgeting altogether.
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