Which of the following statements are true if optimum benefit is to be derived from the budget process?
A) Employees participate in the development of the budget.
B) Targets should include slack to enable easy achievement.
C) Rewards are not required.
D) Employees participate in the development of the budget AND rewards are not required.

Question

Quizplus · Accepted Answer

Employee participation in the development of the budget promotes ownership, commitment, and accountability which can lead to better budget implementation and achievement of organizational goals. Including slack in targets can lead to underperformance and waste of resources. Rewards can incentivize employees to strive towards achieving the budget targets and can enhance motivation and performance. Therefore, the best choice is only A.

Which of the Following Statements Are True If Optimum Benefit