What is participative budgeting? What are its potential benefits?What are its potential disadvantages?
What is budgetary slack? What incentive do managers have to createbudgetary slack?
What is budgetary slack? What incentive do managers have to createbudgetary slack?
Related questions
âBudgetary Slackâ occurs when
| a. | the budget is so difficult to meet that employees slack-off fromwork. | |
| b. | an authoritative, or imposed, budgeting process isused. | |
| c. | employees ask for resources in excess of what they need, inorder to "meet" budget objectives. | |
| d. | employees ask for fewer resources than they need in order tocontinuously improve. |
Advantages of participative budgeting includes all but_______.
| A. | budget estimates are prepared by those directly involved in theactivities. | |
| B. | claims that the budget was unrealistic and impossible to meetcannot be made. | |
| C. | individuals at all levels of the organization are recognized asmembers of the team whose views and judgements are valued by topmanagement. | |
| D. | top managers do not need to scrutinize budgets prepared bylower-level managers. |
