All of the following are necessary for budgets to be effective except:
A)Goals should be challenging and attainable.
B)Employees affected by a budget should be consulted when it is prepared.
C)Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
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 as it may lead to wasteful spending. Instead, managers should prioritize spending based on the most important goals and objectives. This will also help to establish a culture of accountability and efficient resource allocation.

All of the Following Are Necessary for Budgets to Be