Which of the following best describes a typical participative budget?
A) It is NOT subject to review by higher levels of management since to do so would contradict the participative aspect of the budgeting processing.
B) It is NOT subject to review by higher levels of management except in specific cases where the input of higher management is required.
C) It is subject to review by higher levels of management in order to prevent the budgets from becoming too loose.
D) It is NOT critical to the success of a budgeting program.

Question

Quizplus · Accepted Answer

Participative budgets are typically reviewed by higher levels of management to ensure they align with overall company goals and to prevent them from being too lenient or unrealistic. This oversight helps maintain a balance between empowering lower-level managers and ensuring the budget supports the company's strategic objectives.

Which of the Following Best Describes a Typical Participative Budget