Which of the Following Is an Advantage of Participative Budgeting

question 82

Multiple Choice

Which of the following is an advantage of participative budgeting?

• A) It fosters pseudoparticipation.
• B) It encourages budgetary slack.
• C) It tends to discourage goal congruence.
• D) It fosters a sense of responsibility.
• E) There are no advantages of participative budgeting.

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Definitions:

Subsidiary Ledgers

Detailed ledgers that contain information supporting accounts listed in the general ledger, such as accounts receivable or inventory details.

Manual Accounting System

An accounting system in which records are maintained by hand without the use of computer systems.

Chart of Accounts

A systematic listing of all accounts used in the general ledger of an organization, categorized by assets, liabilities, equity, revenue, and expenses.

Two-column Journal

A type of accounting journal that consists of two columns, typically one for debits and one for credits.