Preparing and Reviewing Budgets in a Constrained Environment: An Interdisciplinary, Experiential Case in Ethical Decision Making

• In Event: Teaching, Learning and Curriculum

Abstract

In this paper, we present an experiential case that we created to give students experience with creating and reviewing partial budgets, while also incorporating the complexities of situational constraints and ethical decision making. Across several class sessions, students took on the role of both a departmental budget preparer and then subsequently, the role of an independent reviewer. Students were required to build a budgeted income statement from uncertain accounting information in round one. In round two, students took on the role of an independent budget reviewer; they had to assess the work of their classmates, as well as identify and discuss the factors potentially leading to their classmates’ decisions. In round three, the class as a whole discussed the implications of expectations, culture, pressure, and rewards on their initial accounting decisions. We also discussed how these forces can impact ethical decision making. This activity was intended to be a cross-over activity, bridging the gap between a managerial accounting course and a leadership course. In addition to creating and reviewing budgets, students were tasked with analyzing the factors that contributed to decisions that were made during this process and making recommendations to improve the process. The results of the case as well as student feedback are discussed.

Authors

• Ellen Edwards Best, University of North Georgia

• Wendy Walker, University of North Georgia