What Is the Role of Top Management in a Participative

question 15

Multiple Choice

What is the role of top management in a participative budgeting system?

• A) Top management has no role-the budget is entirely developed by the lower-level employees.
• B) Top management must always tighten employee-set budget standards to eliminate employees' attempts to build slack into the standards.
• C) Top management must ensure that employee-generated objectives are consistent with those of the company.
• D) All of the answers are correct.

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