Research Has Shown That Having Several Levels of Management Participate

question 4

Multiple Choice

Research has shown that having several levels of management participate in the budgetary process is beneficial to both the company and the employees.However,there are certain behavioral problems encountered in the process,one of which is the use of budgetary slack.From the perspective of corporate management,the use of budgetary slack (CMA adapted)

• A)increases the probability that budgets will not be achieved.
• B)increases the effectiveness of the corporate planning process.
• C)increases the ability to identify potential budget weaknesses.
• D)encourages the use of effective corrective actions.
• E)increases the likelihood of inefficient resource allocation.

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Definitions:

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is judged based on how representative it is of that category.

Belief Perseverance

Belief perseverance is the psychological phenomenon where individuals maintain a belief despite new information or evidence that contradicts or disproves it.

Algorithms

A set of rules or a process followed in calculations or problem-solving, especially by a computer.

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning; a 'gut feeling.'