When employees throughout an organisation are meaningfully involved in the budget-setting process, this is referred to as
A) budgeting slack.
B) participative budgeting.
C) padding the budget.
D) employee-based budgeting.

Question

Quizplus · Accepted Answer

When employees throughout an organisation are meaningfully involved in the budget-setting process, it is referred to as participative budgeting. This approach allows for more accurate budget projections and fosters employee engagement and accountability for financial performance. Budgeting slack and padding the budget refer to unethical practices of intentionally overestimating expenses or underestimating revenues, while employee-based budgeting is not a commonly used term in the context of budget-setting processes.

When Employees Throughout an Organisation Are Meaningfully Involved in the Budget-Setting