Budgets are normally more effective when all levels of management are involved in the budgeting process.

Question

Quizplus · Accepted Answer

When all levels of management are involved in the budgeting process, there is better communication and understanding of the goals and objectives of the organization. This allows for more accurate and realistic budgeting, as well as greater buy-in and commitment to achieving the budgeted results. Additionally, involving lower levels of management in the budget process can lead to more accurate and detailed information, as these individuals are often closest to the day-to-day operations of the business.

Budgets Are Normally More Effective When All Levels of Management