In this paper, we study the characteristics of budget objectives by accommodating participation, budget clarity, budget difficulty, budget feedback are hypothesized to determine managerial performance. This research proves the above hypothesis using multiple regressions with a residual approach as an improvement to reduce the problem of multicollinearity in estimation. The residual approach is designed to test the lack of fit between the characteristics of budget objectives and task uncertainty with the managerial performance of manufacturing companies in the study area. In the future, this approach is expected to be in line with the development of a fit model in contingency theory in accounting management. This study uses a sample of 76 managers in manufacturing companies in Makassar using purposive sampling. The questionnaire was used to collect data for this study. The results of this study indicate that participation in the budget and clarity in preparing budget targets are statistically significant at ce = 0.03 in determining the managerial performance of the observed companies. Future research will focus on describing company performance by introducing task uncertainty as a moderating variable. Therefore, to achieve good managerial performance, companies in the manufacturing industry must penetrate aspects of participation and set clear assignments with a clear budget. Improvements and expansion of the analytical framework used by this study are recommended for future research
Volume 11 | 08-Special Issue
Pages: 2293-2300