Management Accounting
BudgetingBudgeting is one of the major areas in management accounting. Much research concentrates on the design of budget schemes and the process of setting budgets. Despite the wide use of budgets in Organisations, the effects of different types of budgets as well as budget processes on managerial performance and effort are still not clear.

Provide an overview on the role of budgeting in Organisations. Discuss the effect of different types of budgets and budget levels on managerial behavior and performance. What implications do these papers have for managerial practice?

These references should serve as a starting point. You are strongly encouraged to search for additional references. Published articles can be found on EBSCO, working papers are available on SSRN.

Fisher, J.G., L.A. Maines, S.A. Peffer and G.B. Sprinkle. 2002. Using Budgets for Performance Evaluation: Effects of Resource Allocation and Horizontal Information Asymmetry on Budget Proposals, Budget Slack and Performance. The Accounting Review 77, 4, p. 847-866.
Fisher, J.G., S.A. Peffer and G.B. Sprinkle. 2003. Budget-based contracts, budget levels and group performance. Journal of Management Accounting Research 15, p. 51-74.
Hansen, S.C., D.T. Otley and W. Van der Stede. 2003. Practice Developments in Budgeting: An Overview and Research Perspective. Journal of Management Accounting Research 15, p. 95-116.
Hannan R.L., F.W. Rankin, K.L. Towry. 2006. Flattening the organization: the effect of organizational reporting structure on budgeting effectiveness. Available at SSRN: http://ssrn.com/abstract=734723
Parker, R.J. and L. Kyl. 2006. Vertical Information Sharing in the Budgeting Process. Accounting, Organizations and Society 31(1): 27-45.
Rankin, F.W., S.T. Schwartz, R.A.Young. 2003. Management control using nonbinding budgetary announcements. Journal of Management Accounting Research 15, p. 75-93.