When top management assumes total control of the budgeting process and seeks only superficial participation from lower-level managers, this practice is called
A) pseudoparticipation
B) false participation
C) participative budgeting
D) none of the above

Question

Quizplus · Accepted Answer

Pseudoparticipation refers to the situation where top management appears to involve lower-level managers in the budgeting process but in reality, they have total control and only seek superficial participation from the lower-level managers. This implies that the lower-level managers are not able to fully contribute their ideas and insights to the budgeting process.

When Top Management Assumes Total Control of the Budgeting Process