All the following are considered to be benefits of participative
budgeting, except for: (please provide the necessary brief
explanation to justify)
| 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 |
Answer
| A. |
Individuals at all organizational levels are recognized as being part of a team; this results in greater support for the organization. True : In participative budgeting the inputs come from all |
| B. |
The budget estimates are prepared by those in directly involved in activities. True; The budget inputs come from those who are involved in the |
| C. |
When managers set their own targets for the budget, top management need not be concerned with the overall profitability of operations. False : It is not a benfit that Top management will not be |
| D. |
Managers are held responsible for reaching their goals and cannot easily shift responsibility by blaming unrealistic goals set by others |
True : Managers of each function or profit centre or cost centre
are responsible for the target achievement and they cannot blame
unrealistic goal as the goals are set by taking inputs from
all.
So except point C all are benefits of a participative
budgeting
