Problem 8.42 Participative versus Imposed Budgeting An effective budget converts the goals and objectives of an organization into data. The budget serves as a blueprint for management's plans. The budget is also the basis for control. Manage ment performance can be evaluated by comparing actual results with the budget Thus, creating the budget is essential for the successful operation of an organization. Finding the resources to implement the budget that is, moving from a starting point to the ultimate goal requires the extensive use of human resources. How managers perceive their roles in the process of budgeting is important to the successful use of the budget as an effective tool for plan ning, communicating, and controlling. Required: 1. Discuss the behavioral implications of planning and control when a company's management 2. Communications plays an important role in the budgetary process whether a participative a. Discuss the differences between communication flows in these two budgetary approaches. employs: (a) an imposed budgetary approach, and (b) a participative budgetary approach or an imposed budgetary approach is used b. Discuss the behavioral implications associated with the communication process for each of the budgetary approaches. (CMA adapted)