Which of the following is NOT an advantage of participative budgeting?

Question

Quizplus · Accepted Answer

Participative budgeting can have various advantages, such as promoting creativity, enhancing goal congruence, and encouraging higher performance. However, it also has some potential drawbacks, such as introducing budgetary slack, which refers to the intentional overestimation of expenses or underestimation of revenue to create a cushion or safety net. Budgetary slack can compromise the accuracy and reliability of the budget, as well as result in inefficiencies and waste. Therefore, option B is the correct answer, as introducing budgetary slack is not an advantage of participative budgeting.

Which of the Following Is NOT an Advantage of Participative