“Budget Participation is a double-edged sword”.

Required:

a) Explain and evaluate the significance of the above statement

b) With respect to planning in a decentralised, multidivisional organisation, what can be done to minimise the risks associated with budget participation?

Question Two (word limit: 500 words)

a) In what situations will an organization choose to make their business units investment centres instead of any other types of responsibility centres? Briefly explain your answer.

b) Can a marketing department be either a revenue centre or a cost centre? Explain.

Question Three (word limit: 500 words)

Identify three of the most successful companies or organizations today, in your opinion.

Briefly explain why they are so successful. For each company, identify:

1. Its business strategy (low cost or differentiation).

2. Its core competencies.