Because budgeting is associated with control, the preparation of a budget should be left to higher-level management and supervisors should have no hand in it.

Question

Quizplus · Accepted Answer

This statement is false. While higher-level management does have a significant role in budget preparation, it is important that supervisors are also involved. Supervisors are often more familiar with the day-to-day activities and expenses of their department, and their input can provide valuable insight and accuracy in the budgeting process. Additionally, involving supervisors in the budgeting process can increase their sense of ownership and responsibility for the budget's success.

Because Budgeting Is Associated with Control, the Preparation of a Budget