For budgets to be effective:
A)Goals should be attainable.
B)Employees affected by a budget should be consulted when it is prepared.
C)Evaluations should be made carefully with opportunities to explain any failures.
D)They should be properly applied to avoid negative effects.
E)All of the options are correct.

Question

Quizplus · Accepted Answer

All the options are correct as they all contribute to the effectiveness of a budget. Attainable goals ensure that the budget is not too ambitious or unachievable, consultation with employees affected by the budget helps to ensure its accuracy and relevance, careful evaluations provide insights on the budget's performance and opportunities to correct any failures, and proper application helps to avoid negative effects such as overspending or waste of resources. Therefore, all the options are equally important in making a budget effective.

For Budgets to Be Effective