Score S-U-C-C-E-S-S 3
Deliberate Communication
were all committed as we repeated that mantra together that S-U-C-C-E-S-S was a current and
future attainable standard!
Keywords:
Budget, Budget performance report, Budgetary slack, Capital expenditures budget,
Cash budget, Continuous budgeting, Controllable variance, Cost variance, Currently attainable
standards, Flexible budget, Goal conflict, Ideal standards, Master budget, Non-financial
performance measure, Process, Production budget, Responsibility center, Standard costs,
Standards, Static budget, Theoretical standards, Zero-based budgeting
Case 13-1 Ethics and Professional Conduct in Business
The director of marketing for Truss Industries Inc., Ellen Knutson, had the following
discussion with the company controller, Bud Wyckoff, on February 26 of the current year:
Ellen: Bud, it looks like I’m going to spend much less than indicated on my February budget.
Bud: I’m glad to hear it.
Ellen: Well, I’m not so sure it’s good news. I’m concerned that the president will see that I’m
under budget and reduce my budget in the future. The only reason that I look good is that we’ve
delayed an advertising campaign. Once the campaign hits in May, I’m sure my actual
expenditures will go up. You see, we are also having our sales convention in May. Having the
advertising campaign and the convention at the same time is going to kill my May numbers.
Bud: I don’t think that’s anything to worry about. We all expect some variation in actual
spending month to month. What’s really important is staying within the budgeted targets for the
year. Does that look as if it’s going to be a problem?