Question

Which of the following is an advantage of participative budgeting? a.It rules out the possibility of building budgetary slack. b.It helps managers set the budgeting standards that are either too high or too low. c.It fosters a sense of responsibility and encourages creativity. d.It ensures only superficial participation from lower-level managers. e.There are no advantages of participative budgeting.

Answer 1

Answer:

c.It fosters a sense of responsibility and encourages creativity

Explanation:

Participative budgeting is a process of planning a budget where the people working in the lower management levels are involved in budget planning.

benefits of participative budgeting

• It increases employee motivation, creativity, and role satisfaction.

• employees make an effort to reach the target and standard that they have form.

• The budgets form are quickly achievable.
• Participation of the employees in budget planning pots responsibility on them.