All of the following are necessary for budgets to be effective except:
A)Goals should be attainable.
B)Employees affected by a budget should be consulted when it is prepared.
C)Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
D)Managers must be aware of potential negative outcomes of budgeting,such as budgetary slack.
E)All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period.

Question

Quizplus · Accepted Answer

All budgeted amounts do not need to be spent for a budget to be effective. In fact, it is often better to have some remaining funds in case of unexpected expenses. This can also help managers to identify areas where they may have over-budgeted in the future.

All of the Following Are Necessary for Budgets to Be