All of the Following Are Necessary for Budgets to Be

question 92

Multiple Choice

All of the following are necessary for budgets to be effective except:

• A)Goals should be 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.

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Definitions:

Situational Leadership Model

A leadership theory suggesting that the most effective leadership style varies according to the situation, and that leaders adjust their styles based on the maturity level of their followers.

Fred Fiedler

A psychologist who developed the contingency theory of leadership, suggesting that the effectiveness of a leader is dependent on both their personal style of leadership and the situation they are in.

Contingency Theory

A management theory suggesting that there is no one best way to organize a corporation, to lead a company, or to make decisions; instead, the optimal course of action is contingent upon the internal and external situation.

Behavioural Styles

Patterns of behavior and interaction that characterize an individual's approach to communication, decision-making, and problem-solving.