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:

Future Years

Refers to the period of time that lies ahead, used in planning, forecasting, or projecting financial and operational activities.

Plant Asset

Long-lived tangible assets used in the production and distribution of goods and services, such as machinery and equipment.

Systematic

Methodical in procedure or plan; carried out using step-by-step methods leading to predictable outcomes.

Service Life

The estimated period over which a fixed asset is expected to be usable by the entity, impacting its depreciation calculation.