Which of the following statements is(are)true regarding the benefits associated with participative budgeting?
(A)Goal congruence by divisions means top management need not be concerned with overall profitability.
(B)Budget assumptions and estimates are prepared by those closest to the budgeted activity.

Question

Which of the following statements is(are)true regarding the benefits associated with participative budgeting?
 (A)Goal congruence by divisions means top management need not be concerned with overall profitability.
(B)Budget assumptions and estimates are prepared by those closest to the budgeted activity.

Quizplus · Accepted Answer

Option A is not true because goal congruence by divisions means that each department's goals align with the overall profitability of the organization; however, top management should still be concerned with overall profitability. 
Option B is true because participative budgeting involves input from those closest to the budgeted activities, allowing for more accurate assumptions and estimates.

Which of the Following Statements Is(are)true Regarding the Benefits Associated