As the budget outlived its usefulness in the 21st century?

Accounting Synoptic: Assignment 1 2013

Learning Objectives

To consider a previously studied management accounting technique in its wider context a budgeting.
.
To demonstrate critical awareness of a key management accounting issue and its relevance to the current practice of management accounting.

To research a current management accounting issue independently, collecting a wide range of relevant resources.

The first assignment is designed to build on your knowledge of a topic which should be familiar to you from your earlier studies. You will need to carry out independent research required by a synoptic module to develop this knowledge further. In order to answer the following questions, you are expected to use a wide range of resources, including books, journals, electronic databases and internet sources. This should not only include the text books and professional articles, such as those used on 50024 and 50082 but also involve researching articles in high quality academic journals. We recommend that you use the articles below AND select a further 10 key articles from your research.

a?The budget is a tool of repression rather than innovationa (Bob Lutz, ex-CEO Chrysler) cited by Hope and Fraser (2003 p)

Has the budget outlived its usefulness in the 21st century?

How do the criticisms of budgeting made by Beyond Budgeting Round Table (BBRT) differ from those generally acknowledged by academics today?

To what extent does the type of organisation, its culture and environment affect how successfully a budget might operate?

How should organisations today overcome the perceived limitations of budgets?



Your answer should be 2,000 words long, excluding your references/bibliography. Use the format specified in the module guide on moodle.

This assignment carries 20% of the available marks for this module.

Deadline: Wednesday 13th February. This is to be handed in during the seminar and a copy upload into Turnitin by the same deadline.

Indicative Reading List

Jackson,C. and Strovic,D.(2004) a?Better Budgetinga CIMA July 2004

betterbudgeting_techrpt_2004.pdf

Dugdale,D. and Lyne,S. (2006) a?Budgetinga Financial Management November 2006

Hope,J and Fraser,R (2003a) a?Who needs budgets?a Harvard Business Review February 2003
Libby,T. and Lindsay,M. (2007) a?Better budgeting or beyond budgetinga Strategic Finance Aug 2007 vol 89 Issue 2 pp46-51
Libby,T. and Lindsay,M. (2010) Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice. Management Accounting Research 21 p56-75
Otley,D (2006) a?Trends in budgetary control and responsibility accountinga in Bhimani, A et al a?Contemporary Issues in Management Accountinga OUP Oxford (available as an e-book)

Reference:

Hope,J. and Fraser,R. (2003a) Beyond Budgeting Harvard Business School Press: Harvard