The participative budget can be a very effective control device in an organization.

Question

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The participative budget involves input from various levels of employees, which can increase their commitment to achieving the budgeted goals. This can lead to better performance and control in the organization. Additionally, because the budget is created with input from those who will be responsible for achieving it, there is greater buy-in and understanding of the budgeted goals, which can result in a more effective control device.

The Participative Budget Can Be a Very Effective Control Device