Which of the Following Is Not an Example of Conflicts

question 46

Multiple Choice

Which of the following is not an example of conflicts created in the budgeting process?

• A)Because firms want to use the most up-to-date information about local operating conditions, they ask lower-level employees for this information, but these employees may not be forthright in sharing their information.
• B)Because a production manager may be overly pessimistic about expected costs, the quality of information used to plan costs may be reduced.
• C)Downplaying expected sales may lead to more achievable targets for the managers, but reduce the quality of information used to plan sales.
• D)The planned targets in budgets become the benchmark for actual results, thereby facilitating control.
• E)All of the above are examples of conflicts in the budgeting process.

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Definitions:

Grandeur

A sense of one's own importance or superiority, often exaggerated and not based in reality.

Paranoia

A psychological disorder marked by false beliefs of being persecuted, unnecessary feelings of jealousy, or an inflated sense of self-importance, usually developed into a systematic framework.

Schizophrenogenic Mother

A now discredited theory suggesting that a cold and rejecting mother could cause schizophrenia in her child.

Frieda Fromm-Reichmann

A psychoanalyst known for her groundbreaking work in the treatment of schizophrenia and her concept of "the schizophrenogenic mother."