Participative budgeting is an approach to budgeting that:
A)is top-down in nature.
B)allows top management to set the budget.
C)discourages budget slack.
D)is more likely to motivate people to work towards the organization's goals than a top-down approach.

Question

Quizplus · Accepted Answer

Participative budgeting involves input and collaboration from all levels of the organization, which can increase motivation and commitment towards achieving the organization's goals. It is a bottom-up approach, where managers and employees are involved in setting the budget, which can reduce budget slack and increase accuracy. Thus, choice D is the best answer. The other options are not correct as they do not reflect the characteristics of participative budgeting.

Participative Budgeting Is an Approach to Budgeting That