four months ago anh tran consulted blackstone to perform an audit review of its 243524

Four months ago, Anh Tran consulted Blackstone to perform an audit review of its budgetary system. A portion of the audit report presented to Anh Tran on the operations of Sino Apparel Company is presented below.Participative budgets are not being utilized at Sino Apparel Company. Currently, the department does not have the automated system capability to produce budget analyses at the departmental level. Traditionally, the factory has been controlled through an authoritative budgeting approach rather than a departmental participative budgeting approach. Given the present business conditions, this approach may no longer be the preferable control process. Increased competition in the marketplace, declining profits, deteriorating margins and increased costs have combined to necessitate an aggressive approach to cost reduction. Based on experience, we believe that Sino Apparel Company would benefit from the development and use of departmental participative budgets for all departments.Observations and recommendation:As the advisor from Blackstone, prepare a brief report to Anh Tran addressing the following concerns to help him implement the aforementioned change in the company:1. Describe the benefits, other than better cost control, that are likely to accrue to Sino Apparel Company from the implementation of a departmental participative budgeting.2. Discuss the behavioral impact the introduction of departmental participative budgeting is likely to have on the following staff of Sino Apparel Company:i. departmental managers,ii. production workers.3. Describe several steps that Sino Apparel Company should take in order to gain maximum acceptance of the new departmental participative budgeting system.(Total word limit for PART III between 400 and 600 words)

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