The Interaction between Accounting Control Systems and Task Uncertainty affecting Budgetary Slack

Abstract

This research examines the interactive effect of accounting controls (Emphasis on meeting tight budget targets, External scanning, Results monitoring and Cost control) and task uncertainty on budgetary slack with a sample of 104 marketing and production managers. The results indicate that two accounting controls (Emphasis on meeting tight budget targets and External scanning) reduce the extent of budgetary slack creation in high task uncertainty situations, but not in low task uncertainty situations. Budgetary slack is lowest when the intensity of accounting controls and task uncertainty are both high. Whilst Emphasis on meeting tight budget targets has a significant effect on slack for both the production and marketing managers, External scanning has a significant effect only for the marketing managers.