Under what situation might a budget be most effective?
A)as a tool to assess blame when costs are too high
B)when used to evaluate a manager's performance
C)Budgets are equally effective in all situations.
D)when it is created by top management

Question

Quizplus · Accepted Answer

A budget is most effective when used to evaluate a manager's performance. This is because a budget provides a benchmark for the manager's performance and helps to set goals for the future. It also allows for better decision making and resource allocation. A budget should not be used as a tool to assess blame or created solely by top management without input and collaboration from those who will be responsible for implementing it.

Under What Situation Might a Budget Be Most Effective