Individuals react to demands of budgets and budgetary controls in different ways. Their behavior can damage the budgeting process. Behavioral problems are often linked to management styles which may include Dysfunctional Behavior and Budget Slack. Uncertainties in the process of budget preparation is also inevitable, hence, managers are expected to keep budgets flexible enough to accommodate uncertainties that are likely to arise. Required: With reference to the above information, (a) Discuss behavioral aspects of budgeting and the various management styles as propounded by Hopwood (1973). NOTE: Your answer should clearly be outlined in a tabular form which contains three main headings as follows: (i) Management Styles (ii) Performance Evaluation (iii) Behavioral Aspects (b) Discuss any six (6) uncertainties that could affect an organization’s budget preparation process.
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