Westport Electric Company Essay example
Westport Electric Corporation
Case Context In a meeting, James King, the supervisor of administrative staff budget section of Westport Electric Company, a large manufacturer and seller of electric and electronic products, was discussing his displeasure with the proposed increase in budget of the offices. According to him, these are not justified and are clear indications of faults in the company’s budgeting system. The company currently has six staff offices like those mentioned and they are tasked with providing advice to top management and operating divisions as well as other staff offices. They also coordinated among the divisions depending on their areas of activity. These staff offices are budgeted using the …show more content…
Still in connection to costs, the group further suggests that management assess proposed expenditures based on whether or not these are seen to achieve overall corporate objectives or not. Quite obviously, some divisional managers may be compelled to send in budgets that will only benefit their units, but which may prove detrimental to the company at large. And since the gauge of success is mostly profit figures, there is a high probability that such expenditures, their reasonableness notwithstanding, may still be approved by top management in the end.
Furthermore, the group wishes to note that management may also look into redefining the role of the vice president for finance. In the current budgeting system, it can be recalled that the vice