Identify how budgeting is used by leadership for planning and control.

Identify how budgeting is used by leadership for planning and control.
Discuss ethical considerations in the budget process.
You have just been hired at ABC Manufacturing, and your supervisor has invited you to sit in on today’s budget meeting. You are given a copy of the following proposed budget for next year to review. The budget is being used by ABC to plan for next year. Your supervisor tells you right before the meeting, “We always overestimate because the president always makes us cut the budget by 20%, and besides, I really want to go to that conference in Las Vegas next year.” He continued,” I have really worked hard this year and put in a lot of overtime so I deserve it.”

ABC MANUFACTURING
Budgeted Income Statement // For the Year Ended Dec 31, 20xx

% Increase Over
last year
Revenue: Sales
700,000
15%
Cost of Goods sold: Cost of goods sold 420,000 20%
Gross Profit
28,000

Expenses:
Advertising
9,500
20%
Cleaning 1,800
20%
Insurance
28,000 20%
Phone
3,600
20%
Rent
24,000
20%
Supplies
6,500 20%
Taxes
10,000
20%
Training/Education 9,800
100%
Utilities
8,500
35%
Wages
150,000
Total Expenses 251,700
Net Income
28,300

Prepare a one- to two-page written report by addressing the following tasks:
Discuss if you think ABC Manufacturing is properly using the budget process to plan for next year’s expenses.
Discuss the comment about the president cutting the budget each year in terms of proper leadership and control?
Discuss the ethical issues related to inflating the budget.
Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

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