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

Question

Quizplus · Accepted Answer

Participative budgeting involves input and participation from various levels of employees, which can lead to a longer budget preparation time. However, this also increases the risk of budget padding, where employees inflate budget figures to secure more resources for their department. Therefore, option E is the best choice that accurately reflects the potential outcomes of participative budgeting. Option A is incorrect as participative budgeting fosters a sense of ownership and responsibility among employees, motivating them to achieve budgetary goals. Option B is incorrect as participative budgeting often involves a longer budget preparation time due to the increased input from various departments. Option C is incorrect as budget padding is a common problem in participative budgeting. Option D is incorrect as financial modeling can be easier to undertake with increased input and knowledge from employees.

Which of the Following Outcomes Is Sometimes Associated with Participative