One of the most important assumptions about how managers will act in a budget-controlled environment is that:
A)managers will largely ignore budgets.
B)budgets must be too tight to encourage high aspirations.
C)budget slack will exist in almost every budget and is negotiated by all managers.
D)measurement affects behavior.

Question

Quizplus · Accepted Answer

The assumption that measurement affects behavior is the most important one when it comes to budget-controlled environments. This means that managers are more likely to pay attention to their budgets and adjust their behavior accordingly because they know they are being measured on their performance. The other options are not necessarily true in all situations, as some managers may take budgets seriously and try to meet them, budgets can be set appropriately to encourage high aspirations, and not all managers negotiate for slack in their budgets.

One of the Most Important Assumptions About How Managers Will