Rashad was excited to be going to work for a What's What retail store. On his first day at the store, he attended a meeting with the store manager and all the other employees. The purpose of the meeting was for the manager to present the budget for the next year. Several of the employees suggested changes to some of the categories that would incur additional expenditures but would improve worker productivity. After a discussion, the store manager agreed to adopt the changes. Which of the following can be said about this What's What store's budgeting process?
A) Because some of the categories were changed, the manager will have to review the budget in order to balance the revenues and the expenditures.
B) By accepting suggestions that will affect the budget from the employees, the store manager is developing a participative budget.
C) The budget for the store is a rolling budget because the store manager is updating using employee suggestions.
D) This What's What retail store is using an imposed budget because the store manager presented the budget.

Question

Quizplus · Accepted Answer

A budget developed using input from the employees that are most knowledgeable about activities that affect an area is called a participative budget.

Rashad Was Excited to Be Going to Work for a What's