Among the advantages of the participative approach to budgeting is:
A) It relieves the finance department of most potential involvement.
B) It produces a more realistic plan than could be developed by other means.
C) It affords the supervisor ultimate budget approval.
D) It makes acceptance easier for administration and the board of directors..

Question

Quizplus · Accepted Answer

The participative approach to budgeting involves multiple levels of the organization in the budgeting process, which tends to produce more realistic and achievable plans because those who are directly involved in executing the budget have input into its creation. This approach contrasts with top-down budgeting, where the budget is created by upper management without much input from lower-level employees.

Among the Advantages of the Participative Approach to Budgeting Is