Which of the Following Statements Regarding the Budgeting Process Is

question 97

Multiple Choice

Which of the following statements regarding the budgeting process is TRUE?

• A)The budget should be designed from the bottom up,with input from employees at all levels.
• B)The budget should be approved by the company's external auditors.
• C)The budget should always be designed by top corporate management.
• D)All of the listed statements are true regarding the budgeting process.

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Definitions:

Representativeness Heuristic

The representativeness heuristic is a mental shortcut that involves judging the likelihood of an event by comparing it to an existing prototype in our minds.

Belief Perseverance

The tendency to maintain one's belief even in the face of contradictory evidence.

Overconfidence Phenomenon

A cognitive bias where a person's subjective confidence in their judgments is reliably greater than their objective accuracy.

Preconceptions

Ideas or opinions formed before having the evidence for their truth or usefulness, often acting as biases or assumptions.