Which of the following is a benefit of participative budgeting?
A) Employees tend to be more motivated to achieve the budget.
B) A twelve-month planning horizon is maintained at all times.
C) Budget planning is highly centralized.
D) Communication is clearer because it flows in only one direction - upwarD.

Question

Quizplus · Accepted Answer

Participative budgeting invites participation in the budget process by personnel at all levels of the organization,not just upper-level managers.Because they are directly responsible for meeting budget goals,subordinates can offer more realistic targets.The budget is instead a self-imposed constraint.Employees can hold no one responsible but themselves if they fail to accomplish the budget objectives they established.

Which of the Following Is a Benefit of Participative Budgeting