Question
Which of the following are disadvantages of participative budgeting? Select one or more: i. Those creating the budget may be out of touch with day-to-day
Which of the following are disadvantages of participative budgeting?
Select one or more:
i. Those creating the budget may be out of touch with day-to-day activities
ii. higher spending targets which will result in a reconciliation process
iii. budgets which are not in-line with corporate objectives
iv. Departments may look for resources that just dont fit into the budget.
v. increased ownership of the budget
vi. Lower management does not have to take time to prepare the budget
vii. increased understanding, communication and commitment on behalf of managers
viii. Increases goal congruency and concentration on corporate objectives
ix. too much focus on department objectives
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