Which one of the following is not considered to be a benefit of participative budgeting? When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations. Managers are more motivated to reach the budget goals because they participated in setting them. Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization. The budget estimates are prepared by those in direct contact with various activities.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which one of the following is not considered to be a benefit of participative budgeting?

  • When managers set the final targets for the budget, top management need not be concerned with the overall profitability of current operations.
  • Managers are more motivated to reach the budget goals because they participated in setting them.
  • Individuals at all organizational levels are recognized as being part of the team; this results in greater support of the organization.
  • The budget estimates are prepared by those in direct contact with various activities.
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