To overcome possible problems with budgets that are developed only by top level managers, an alternative is to use:
A) Mandatory budgets
B) Authoritative budgets
C) Flexible budgets
D) Participative budgets

Question

Quizplus · Accepted Answer

Participative budgets involve input from all levels of employees, including those who are directly responsible for carrying out the budgeted activities. This approach not only ensures that the budget reflects the experiences and ideas of those who are most knowledgeable about the operations, but also increases employee motivation and commitment to achieving the budget goals. Additionally, participation in the budgeting process can lead to improved communication, cooperation, and coordination among different departments and levels of the organization.

To Overcome Possible Problems with Budgets That Are Developed Only