Which statement relating to the provision of motivation as a benefit of budgeting is not true?
A) When all levels of management participate in preparing the budget it has a better chance of acceptance.
B) The budgeted level of performance should be beyond that attainable with a reasonably amount of effort, to provide employees with a challenge.
C) An improperly prepared budget may have an adverse effect on motivation.
D) To increase the chances of acceptance the budget is best approached from the bottom up.

Question

Quizplus · Accepted Answer

The correct level of performance to aim for in a budget should be challenging yet attainable with a reasonable amount of effort. Setting the bar beyond what can be reasonably achieved can demotivate employees rather than motivate them.

Which Statement Relating to the Provision of Motivation as a Benefit