The effectiveness of any budgeting system depends directly on the attitudes of top management toward the budgeting system.

Question

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The attitudes of top management, who set the tone for the organization, can significantly influence the budgeting process and ultimately impact its effectiveness. If top management does not value the budgeting system or views it as a burden, it may not be taken seriously or followed consistently throughout the organization. On the other hand, if top management is committed to the budgeting process and sees it as an important tool for planning and controlling operations, it is more likely to be effective.

The Effectiveness of Any Budgeting System Depends Directly on the Attitudes