All of the following are necessary for budgets to be effective except:
A) Employees affected by a budget should be consulted when it is prepared.
B) Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
C) Goals should be challenging and attainable.
D) Managers must be aware of potential negative outcomes of budgeting, such as budgetary slack.
E) All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period.

Question

Quizplus · Accepted Answer

All budgeted amounts do not need to be spent to ensure that budgets aren't reduced for the next period. In fact, it is important to carefully monitor spending and avoid unnecessary expenses in order to stay within budget and achieve financial goals.

All of the Following Are Necessary for Budgets to Be