| Abstract: | This study examines the perceived and desired role of the budget in thirteen medium or large UK companies, where the budget was usually perceived as a forecast of future performance although in all companies there was a minority who perceived a target element. The budget was generally used as a control device by means of calculating and investigating variances. Further, pressure to meet the budget came most strongly from the individual, not senior management or accountants. In fact, greater pressure was considered beneficial and no dysfunctional consequences from budget pressure were apparent. There was only limited participation in the budget-setting process and there was a general desire for more. No systematic explanation of the different responses between companies was found but convincing company-specific explanations were discovered. Some interesting differences between US and UK practice were observed. |
