Responsible Accounting Essay

1. bring out at least two behavioral that could arise there are two potential behavior advantages if coach accepts and participate in the responsibility accounting remains and democratic budgeting form. Responsibility accounting is utilise to measure the performance of people and department to foster goal congruence whereas, participatory budgeting system is a budgeting process under which those people wedged by a budget are actively involved in the budget creation process. When BSCS coach-and-four is likely to accept the system and be motivated to attain the budget target, they were actively involved in setting the goals and know what is expected of them. It would be motivate them to plan onwards and promote goal congruence. Besides that, manager would be pleased to be responsible only for those items they can control because they have certain objective to be acquired. Furthermore, communication and group cohesiveness would be improved because managers would intent part of a team collectible to participate in two planning and implementation system that are to be adopted2. Identify at least two potential problems that could arise Responsible report SystemIn BSC responsible accounting system, the two potential problems that tycoon be arise if the manager did not accept the changes in the philosophy. outgrowth they provide be a problem if they could not resent in being measured on an individual basis rather than the saucy system. They may have responsible for costs over which they have no control on it. So the manager must understand the raw responsibilities in new culture of caution and how they must operates and gives cooperation on it. If the manager did not accept the changes, they might face with the high focus on their own departments goal and this impart contribute to the lack of communication among departments and to the company performance.Participating Budgeting SystemParticipating budgeting system encouraged the manager to be mor e motivated in doing their jobs and take responsibility to achieve the arranging goals. This go out encourage creativity and also ideas to the organization confederation to work as a team and giving cooperation to each other. However, overemphasis on department goals can hurt cross departmental employee relation due to the different motivation and also goals.3. Discuss the likelihood that the system will contribute to the alignment of organizational and personal goals. Responsibility Accounting System.This system is used to measure the performance of people and departments to foster goal congruence. It direction that the employees and organization are achieving and have same goals and objective. Therefore, if the company adopting this system it will serving to ensure that the organizational and personal goals are aligned and help to achieve companys objective. Since Commercial Maintenance, Inc. took the time to fully exempt and communicate the system to BSCs managers, by pointi ng out the advantages and encouraging their participation, organizational and personal goals will likely become aligned. Hence, it will increase the management performance as well as the company reputations. democratic Budgeting System.Participatory budgeting is a process of democratic and decision making, and a type of participatory democracy, in which managers or employees decide how to allocate the organization budget. Participatory budgeting allows some(prenominal) organization and employees to identify, discuss and gives them the power to make real decisions about how notes is spent. If the company implementing this system it will give take in equally to the organization and employees because the managers and employees will involve in setting up the organization budget. They will know and understand more what the company wants and needs. Therefore, this system also will contribute to the alignment of organizational and personal goals and give lots of benefit to BSC.