Johnson Retail has seven stores located throughout the state of Vermont. Once a year, store managers meet in the corporate headquarters where they are given their budgets that were created by finance for the next year. Over the course of that week, finance presents the budgets for each store allowing store managers to ask questions about their budget and to make changes to their budgets. Which of the following is true?

Question

Quizplus · Accepted Answer

The development of the budget by finance would indicate a centralized decision-making company, but because the plan managers can make changes, it indicates a decentralized decision-making organization. Since the plant managers, who know the most about their parts in the plant's activities, are allowed to provide input to the budget, the budget should be considered a participate budget.

Johnson Retail Has Seven Stores Located Throughout the State of Vermont