Scribe Essay

288 WordsDec 7, 20122 Pages
I have received the memorandum from you which is related to the issues of budgeting games in the human resource department. Regarding to the issues you have mentioned, budgetary slack is a very subjective matter; there are pros and cons within the budgetary slack. The most important is that you have to make a reasonable explanation together with the evidence to proof that the action have made is considerable. First of all, we as the accounting department do understand that the budgetary slack is often used by the human resource department to cope with uncertainty. If anything happen, it will ensure that the department has sufficient money to make recovery from the impact of the event and still be able to meet the cost budget. For example, you can actually imply that although you have confident in the recruiting and training program will be succeed with lesser resource than what have been budgeted, the budgetary slack is made to serve as a backup for any uncertainty. Consequently the department will still have sufficient resources to make correction of error if any negative event happens. Besides that, we understand that human resource department will overestimate 10% more than the total real cost needed for travelling expenses to face any uncertainty happen such as the instability rate of the hotel and the number of employee that given the incentive for travelling on that particular year that always change. The uncertainties can be cushion by the slack in the budget that has been done. Therefore, as you see the example has been given above, you should look into all part of budgeted expenses and give the explanation on why the expenses are set at that amount together with the

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