A Note on Bundling Budgets to Achieve Management Control

38 Pages Posted: 28 Oct 2009 Last revised: 29 Jul 2010

See all articles by Anthony D. Nikias

Anthony D. Nikias

Keimyung University

Steven T. Schwartz

SUNY at Binghamton - School of Management

Richard A. Young

Ohio State University (OSU) - Department of Accounting & Management Information Systems

Date Written: October 27, 2009

Abstract

By its very nature, management control research can be complex and difficult to understand, and hence challenging to introduce into the classroom. Nevertheless, it is important for accounting instruction to retain a connection between teaching and research. This note provides guidance on how recent findings in the theory of management control can be introduced into the classroom. The general approach is to present findings in the academic literature using a combination of numerical examples and classroom experiments. We use this two-pronged approach to illustrate that the bundling of budget proposals mitigates management control issues in a setting where control issues arise because subordinates are privately informed and self-interested. In our experience this approach stimulates student interest and increases the likelihood of successful implementation in undergraduate and graduate classes.

Keywords: Management Accounting, Slack, Bundled Budgets

JEL Classification: M46, A20

Suggested Citation

Nikias, Anthony D. and Schwartz, Steven T. and Young, Richard A., A Note on Bundling Budgets to Achieve Management Control (October 27, 2009). Fisher College of Business Working Paper No. 1495192. Available at SSRN: https://ssrn.com/abstract=1495192 or http://dx.doi.org/10.2139/ssrn.1495192

Anthony D. Nikias

Keimyung University ( email )

Daegu
Korea

Steven T. Schwartz

SUNY at Binghamton - School of Management ( email )

Binghamton, NY 13902-6015
United States
607-777-2102 (Phone)

Richard A. Young (Contact Author)

Ohio State University (OSU) - Department of Accounting & Management Information Systems ( email )

2100 Neil Avenue
Columbus, OH 43210
United States
614-292-0889 (Phone)
614-292-2118 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
444
Abstract Views
1,368
rank
63,846
PlumX Metrics