Budgetary performance refers to the outcome indicators that reveal the relationship between customer funds and the goods or services provided by an organization. A performance budget is used to show how the organization performs during its operation including the associated revenue and expenses.  A reward system is a program that is set up by an organization with the aim to motivate its employees (Gitman, Juchau & Flanagan, 2015). Rewards, which are distinct to employee salary, are awarded in the form of commercial or physical goods which have a cost to the company. Despite the perception that such systems are a domain of large corporations, small organizations are also instituting the concept to increase output performance and lure top personnel in the competitive market scene. Ethical behavior is concerned with the actions an employee expresses and are consistent with corporate values. Ideally, ethical behavior is considered a positive for business operation since it incorporates actions that exhibit respect for moral principles such as quality, fairness and cultural diversity (Giorgini, et al., 2015). The paper will demonstrate the concepts of budgetary performance, rewards, and ethical behavior through an analysis of a case study that will delve into the actions of Linda, the marketing manager, plant manager, and division controller. Linda’s Actions Linda’s actions are not ethical. While administering the budgeting process, Linda deliberately misinterprets the financial capabilities of her division for her gain through the organization’s rewarding system. In ensuring that she attains the budgeted profits, she alters the accounting procedure. [Show Less]