Which Statement Relating to the Provision of Motivation as a Benefit

question 11

Multiple Choice

Which statement relating to the provision of motivation as a benefit of budgeting is not true?

• A) When all levels of management participate in preparing the budget it has a better chance of acceptance.
• B) The budgeted level of performance should be beyond that attainable with a reasonably amount of effort, to provide employees with a challenge.
• C) An improperly prepared budget may have an adverse effect on motivation.
• D) To increase the chances of acceptance the budget is best approached from the bottom up.

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Definitions:

Economic Grounds

The financial or monetary basis for decisions or actions, often referring to the justification for economic policies or business strategies.