A budget is most likely to be effective if
A) it is used to assess blame when things do not occur according to plans.
B) it is not used to evaluate a manager's performance.
C) employees and managers at the lower levels do not get involved in the budgeting process.
D) it has top management support.

Question

Quizplus · Accepted Answer

A budget is most likely to be effective if it has top management support. This means that the organization's leaders must prioritize and actively participate in the budgeting process, as it sets the direction and goals for the entire organization. Without top management support, a budget may lack credibility and consensus, making it difficult to implement and achieve its objectives. Options A, B, and C are all counterproductive to effective budgeting because they do not involve constructive feedback and participation from all levels of the organization, which are essential for accurate budget projections and successful implementation.

A Budget Is Most Likely to Be Effective If