Company A uses a heavily participative budgeting approach whereas at Company B, top management develops all budgets and imposes them on lower-level personnel. Which of the following statements is false?

Question

Quizplus · Accepted Answer

Budget padding, or overestimating expenses to increase budget allocation, is more likely to occur when top management develops budgets without input from lower-level employees. In a heavily participative budgeting approach, employees have more ownership over the budget and are less likely to pad it. The other statements are true.

Company a Uses a Heavily Participative Budgeting Approach Whereas at Company