All the following are considered to be benefits of participative budgeting, except for:
A)Individuals at all organizational levels are recognized as being part of a team; this results in greater support for the organization.
B)The budget estimates are prepared by those in directly involved in activities.
C)When managers set their own targets for the budget, top management need not be concerned with the overall profitability of operations.
D)Managers are held responsible for reaching their goals and cannot easily shift responsibility by blaming unrealistic goals set by others.

Question

Quizplus · Accepted Answer

Participative budgeting does not absolve top management from the responsibility of ensuring overall profitability. In fact, top management plays a key role in setting the overall direction and goals of the organization, which are then used to guide the budgeting process. Therefore, option C is not a benefit of participative budgeting. The other options are benefits of participative budgeting, as they encourage teamwork, increase accuracy in budget estimates, and hold managers accountable for their goals.

All the Following Are Considered to Be Benefits of Participative