Undesirable Behavior Is Especially Common in a Bottom-Up Budget Environment

question 98

Multiple Choice

Undesirable behavior is especially common in a bottom-up budget environment because managers

• A)may be required to explain unfavorable outcomes for amounts for factors they are able to control that caused the outcomes.
• B)have the ability to include budgetary slack to increase his or her chances of receiving a favorable performance evaluation.
• C)tend to employ tactical planning.
• D)do not control excess spending, and often exceed budgeted expenses.

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Definitions:

Residual Value

The projected amount an asset is expected to yield when sold at the conclusion of its usable lifespan.

Financial Perspective

A viewpoint focused on analyzing monetary aspects, including profits, expenses, and financial health of a business or investment.

Lead Indicators

Metrics that are used to predict future changes or trends, helping organizations to anticipate and prepare for future outcomes.

Organisation's Goals

The strategic objectives that an organization aims to achieve within a specific timeframe to fulfill its mission and vision.