The practice in which top management assumes total control of the budgeting process, seeking only superficial participation from lower-level managers is referred to as:
A)budgetary slack.
B)participative budgeting.
C)pseudoparticipation.
D)myopic behavior.

Question

Quizplus · Accepted Answer

Pseudoparticipation is the practice in which top management assumes total control of the budgeting process, seeking only superficial participation from lower-level managers. This can lead to a lack of commitment from employees and can result in inaccurate or unrealistic budgets. Budgetary slack refers to the practice of purposely overstating costs or understating revenues in a budget in order to make it easier to achieve. Participative budgeting involves involving lower-level managers in the budgeting process and is generally considered a more effective and accurate approach. Myopic behavior refers to short-sighted decision making that focuses on immediate gains rather than long-term consequences.

The Practice in Which Top Management Assumes Total Control of the Budgeting