One potential drawback to a bottom-up planning process is that:
A) Lower-level managers may fail to disclose private information in order to create budget slack.
B) It may induce top-level management to mandate stretch goals.
C) It precludes benchmarking or other means of targeting.
D) It is inherently inefficient.

Question

Quizplus · Accepted Answer

Lower-level managers might withhold private information to create budget slack, which is a drawback of the bottom-up planning process. This can lead to less accurate and potentially inflated budgets as managers aim to ensure they have more resources than needed, making it easier to meet or exceed their targets.

One Potential Drawback to a Bottom-Up Planning Process Is That