Which of the following statements is (are) true regarding the benefits associated with participative budgeting?
(A) Goal congruence by divisions means top management need not be concerned with overall profitability.
(B) Employee motivation and acceptance of goals is enhanced.
A) Only A is true.
B) Only B is true.
C) Both of these are true.
D) None of these is true.

Question

Quizplus · Accepted Answer

Participative budgeting enhances employee motivation and acceptance of goals because employees are involved in the budgeting process, which can lead to a sense of ownership and commitment. However, goal congruence by divisions does not mean top management can ignore overall profitability, as they still need to ensure that divisional goals align with the organization's overall objectives.

Which of the Following Statements Is (Are) True Regarding the Benefits