Which of the following outcomes is (are) sometimes associated with participative budgeting?

Question

Quizplus · Accepted Answer

Participative budgeting involves input from employees or team members in the budget preparation process. This can lead to longer preparation time as multiple inputs need to be considered, hence (B) is correct. However, sometimes employees may overestimate or pad their budgets to ensure that they are not penalized for not attaining the goals; hence (C) is also correct. On the other hand, participatory budgeting creates a sense of ownership and encourages employees' commitment towards achieving the set goals, resulting in more efforts towards achieving the budget goals; hence (A) is incorrect. Financial modeling becomes easier with participatory budgeting, as employees can provide more accurate and detailed information; hence (D) is incorrect. Thus, the best answer is (E).

Which of the Following Outcomes Is (Are) Sometimes Associated with Participative