Budgeting Comments (Exercise 6-13 ? Revised) Select one of the following quotes from the text to discuss. Clearly state whether you either agree or disagree with the comment and support your opinion with at least one scholarly resource. Include in your response an explanation of the major purposes of budgeting. Your initial post should be 200-250 words.One major criticism of budgeting is that it is used as a ?cost reduction? tool rather than a ?cost control? tool. The objective of the budget is to control costs at an efficient level of operation. There are generally three benefits from allowing employees to participate in developing the budget: (1) Employees tend to accept the budget as their own plan of action. (2) Participation tends to increase morale among employees and toward management. (3) Employee cohesiveness is increased, and productivity will also increase if dictated by the group norm. Even though budgets are quantitative tools, considerable emotion is connected to budgeting. The individual in control often sees the budget as a means of getting things done. People being controlled often have feelings of anxiety because their success and promotion are tied directly to the budget.6-13.Responsibility Reporting. The following accounts and amounts (with 000s omitted) for Waitzman Company were taken from the accounting and budgeting records for June:JuneYear-to-dateAcct. no.Account nameActualBudgetActualBudget5110Advertising$125$135$833$8105120Bad Debt Expense37362182165130Sales Commissions1091117546706100Direct Materials1,3191,3888,1788,3286200Direct Labor7497514,5994,5066310Depreciation ? Factory Machinery45452752806320Factory Rent2442441,4641,4646330Factory Utilities34332372186340Indirect Labor1761741,0561,0446350Property Taxes ? Factory Machinery19211141266360Repairs and Maintenance ? Factory47503513207120Property Taxes ? Office Equipment7842487130Salaries of Administrative Personnel1,6871,6019,1229,606Question:Prepare a responsibility performance report for manufacturing operations. Use a format you think will best show budget performance.
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