Which one of the following is an advantage of using participative budgeting?
A)It is updated daily to reflect current activity.
B)It assures the company is operating at the activity level of the master budget.
C)It allows companies to compare the current with the previous year.
D)Lower level managers are more likely to perceive budgets as fair.

Question

Quizplus · Accepted Answer

Participative budgeting involves lower level managers in the budgeting process, which leads to a greater perception of fairness. This can improve morale and increase motivation, as employees are more likely to support a budget they had a hand in creating. However, options A, B, and C do not relate to participative budgeting.

Which One of the Following Is an Advantage of Using