John, the production supervisor at Walrus Ball Caps, is reviewing his monthly actual expenses versus budget expenses for his production line. He needs to provide finance with his budget for next year. He notices he is significantly under budget in the supplies category. To ensure his budget does not get reduced for the next year, he has the purchasing agent order enough supplies to bring the category to close to the budget. This budgeting method could be described as a(n)

Question

Quizplus · Accepted Answer

Developing a budget using input from the employees that are most knowledgeable about activities that affect an area is called a participative budget, and believing that if he does not spend all of his budget, then he will lose it, is called "use it or lose it" thinking.

John, the Production Supervisor at Walrus Ball Caps, Is Reviewing