Budgets can have a positive or negative effect on human behavior depending on the manner in which the budget is developed and administered.

Question

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Budgets can provide motivation and direction for individuals and organizations to achieve their financial and strategic goals. However, if budgets are overly restrictive or unclear, it may result in frustration, demotivation, and unethical behaviors such as padding expenses or cutting corners to meet budget targets. Therefore, it is important to develop and administer budgets in a thoughtful and transparent manner to achieve positive behavioral outcomes.

Budgets Can Have a Positive or Negative Effect on Human