advanced management accounting

Highly achievable budget targets reduce the risk of gameplaying. The stakes associated with budget achievement in most firms, which include bonuses, promotions, and job security, are so significant that managers who are in danger of failing to achieve their budget targets have powerful motivations to play games, either with the numbers or through foolhardy decisions. (Merchant and Van der Stede, page 316)

(a) Critically evaluate the above statement through providing evidence from literature.

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