Which of the following is not one of the bad effects sometimes cited for using budgets and variances from budgets to measure managers?
A) Managers become less flexible, and less willing to take actions that might make them miss monthly targets.
B) Managers become more likely to game the system by building in budgetary slack.
C) Managers adopt a short-term focus, and do not pay attention to actions that have long-term consequences, such as training.
D) Lower-level managers use the budget targets as an indication of top management's goals for the year.

Question

Quizplus · Accepted Answer

All of the other options are bad effects that are often cited for using budgets and variances to measure managers. Option D, however, is not a bad effect but rather a potential positive outcome as it indicates that lower-level managers are paying attention to the goals set by top management.

Which of the Following Is Not One of the Bad