Participative Budgeting Has Which of the Following Potential Problems

question 117

Multiple Choice

Participative budgeting has which of the following potential problems?

• A)building slack into a budget
• B)encourages individual behavior that is in basic conflict with the goals of the organization
• C)using budgets as a part of performance evaluations could lead to unethical behavior
• D)managers take action that will improve performance in the short run but has long-term consequences

---

Definitions:

Consistently Performed

Actions or tasks carried out with uniformity and reliability over a period, ensuring stability and predictability in outcomes.

Internal Customers

Refers to individuals or departments within an organization that rely on the support or services of another unit to fulfill their job duties.

Within The Organization

Pertaining to actions, processes, or relationships that occur internally in a company or an institution.

ISO Certification

A seal of approval from the International Standards Organization signifying that a company meets high standards of quality and efficiency in its operations.