Critics (For Example, the Beyond Budgeting Roundtable) of Traditional Budgeting

question 71

Multiple Choice

Critics (for example, The Beyond Budgeting Roundtable) of traditional budgeting assert that the budgeting process:

• A) Fails to adequately compensate managers for accomplishing stated budgetary amounts.
• B) Puts too much emphasis on the need for goal congruency.
• C) Makes too much use of so-called linear compensation plans.
• D) Fails to include sufficient budgetary details.
• E) Does not include sufficient "budgetary slack."

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Definitions:

Pay Discrepancy

The difference in earnings between groups of people, often based on gender, race, or occupation.

Informal Labor Market

Employment that is not regulated by the state, often lacking formal contracts, job security, and legal protections.

Gender Socialization

The process by which individuals learn the gender norms, behaviors, and roles expected of them by society based on their assigned sex.

Interpersonal Relationships

The social connections and interactions between two or more individuals, ranging from casual acquaintances to deep, enduring relationships.