When badly managed,budgeting can lead to:

Question

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When budgeting is badly managed, it can lead to game-playing and budgetary slack, where employees manipulate the budget to make it easier to meet targets or increase their own performance. This can lead to inaccurate financial reporting and reduced accountability. It can also undermine trust and communication within the organization. Better employee commitment, accountability, communication, and honesty are all positive outcomes of effective budgeting.

When Badly Managed,budgeting Can Lead To