d a barrier to change will be examined to determine what validity, if any, there is to the statement.
This analysis will use both secondary sources from experts on budget theory and implementation and will and a primary hypothetical example of StaTron Gaming, a computer games company located in Las Vegas, Nevada. The analysis will begin with a historical overview of the relationship of budgeting to traditional company management, and then move into a discussion of the pros and cons of the initial quote.
Historical Relationship of Budgets and Corporate Growth
Hewitt (1998) points out that at one time in business history, budgets were indeed used as instruments of repression.
Traditionally an instrument of financial discipline, the annual budget in the past allocated subordinate departments a sum of costs they could incur or profits they were to make. To transgress those limits in the wrong direction at the end of the following 12 months was to invite criticism or punishment from the finance department (Hewitt, 1998, 30).
Early budget management systems (during a period roughly from 1780 to 1950) were based on accounting general ledger rules, which were first formulated in England, in which careful recording of debits and credits were us
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