QUESTION 14 Which of the following is not an advantage of participative budgeting? It fosters a sense of creativity for managers. O It encourages managers to use budgetary slack. It encourages goal congruence It encourages a higher level of performance. O It fosters a sense of managerial responsibility QUESTION 15 Before a direct materials purchase budget can be prepared you should first: O Prepare a sales budget Prepare a production budget O Decide on the desired ending inventory of direct materials O Do all of these QUESTION 16 Some key budgetary features that tend to promote positive managerial behavior are: Frequent feedback on performance Participative budgeting O Realistic standards O Well-designed monetary and non monetary incentives All of these QUESTION 17 The term for deliberately underestimating revenue or overestimating costs to make future period appear less attractive in the budget than reality is: Participative Budgeting Financial Budget Goal Congruence Budgetary Slack QUESTION 18 Allowing subordinate managers considerable say in how the budgets are established Participative Budgeting O Master Budget Incentives Financial Budget QUESTION 19 The alignment of managerial and organizational goals: Incentives Participative Budgeting Goal Congruence O Master Budget