Participative budgeting offers which of the following advantages?
A)It offers nonmonetary incentives to employees that may lead to higher levels of employee performance.
B)It involves individuals whose knowledge of local conditions may enhance the budgeting process.
C)It communicates a sense of employee responsibility.
D)All of the above are advantages of participative budgeting.

Question

Quizplus · Accepted Answer

Participative budgeting offers all of the advantages listed in options A, B, and C. It provides nonmonetary incentives to employees through their participation in the budgeting process, it enhances the quality of the budget through the input of individuals with local knowledge, and it creates a sense of responsibility among employees for meeting budget targets.

Participative Budgeting Offers Which of the Following Advantages