Which of the following is a disadvantage of participative budgeting?
A)It is a time-consuming process.
B)Managers may pad the budget.
C)Both it is a time-consuming process and managers may pad the budget.
D)Neither that it is a time-consuming process nor that managers may pad the budget.

Question

Quizplus · Accepted Answer

Participative budgeting involves the collaboration and input of multiple managers or department heads, which can be time-consuming. Additionally, there is a risk that these managers may pad the budget to ensure they receive sufficient resources for their department, which may lead to inaccuracies or inefficiencies in the budgeting process. Therefore, both options A and B are valid disadvantages of participative budgeting. Option D is incorrect because both A and B are valid disadvantages.

Which of the Following Is a Disadvantage of Participative Budgeting