Budgetary slack directly impairs a firm＇s budgetary management. Budgetary slack at a firm＇s business unit level makes the firm level budget like a building on sand. However, it is difficult to detect the existence a...Budgetary slack directly impairs a firm＇s budgetary management. Budgetary slack at a firm＇s business unit level makes the firm level budget like a building on sand. However, it is difficult to detect the existence and to evaluate the extent of budgetary slack at＇a firm＇s business unit level. Starting with the five-year historical data of a service delivery center in a U.S. Fortune 500 firm, this research develops a comprekensive approach for probing and assessing the budgetary slack in a firm＇s business units. The approach leverages operational efficiencies and transfer values of business units of a firm＇s internal transfer system. It also contributes to evaluating the rationale of the budget of a firm＇s business unit in the budgetary approval process.展开更多
文摘Budgetary slack directly impairs a firm＇s budgetary management. Budgetary slack at a firm＇s business unit level makes the firm level budget like a building on sand. However, it is difficult to detect the existence and to evaluate the extent of budgetary slack at＇a firm＇s business unit level. Starting with the five-year historical data of a service delivery center in a U.S. Fortune 500 firm, this research develops a comprekensive approach for probing and assessing the budgetary slack in a firm＇s business units. The approach leverages operational efficiencies and transfer values of business units of a firm＇s internal transfer system. It also contributes to evaluating the rationale of the budget of a firm＇s business unit in the budgetary approval process.
