In the Context of Budget Preparation, Which of the Following

question 60

Multiple Choice

In the context of budget preparation, which of the following is a disadvantage of participatory budgeting?

• A) It can lead to budgetary slack.
• B) It fails to motivate middle and first-line managers.
• C) It results in an inadequate representation of the issues faced by individual departments.
• D) It fails to identify the resources needed to achieve goals.

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Definitions:

Jointly Controlled Entity

An entity that is operated and controlled through a contractual arrangement between two or more parties who have joint control.

AASB 11

An accounting standard issued by the Australian Accounting Standards Board that outlines the reporting requirements for parties involved in joint arrangements.

Joint Operation

A business activity owned and managed by two or more parties that share control, resources, and obligations directly.

Jointly Controlled Operations

A collaboration where the entities involved do not create a separate entity but rather operate under a joint agreement, sharing control, and responsibilities.