Company A uses a heavily participative budgeting approach whereas at Company B, top management develops all...

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Accounting

Company A uses a heavily participative budgeting approachwhereas at Company B, top management develops all budgets andimposes them on lower-level personnel. Which of the followingstatements is false?
A. A's employees will likely be more motivated to achieve budgetarygoals than the employees of Company B.
B. B's employees may be somewhat disenchanted because although theywill be evaluated against a budget, they really had little say inbudget development.
C. Budget padding will likely be a greater problem at CompanyB.
D. Budget preparation time will likely be longer at CompanyA.
E. Ethical issues are more likely to arise at Company A, especiallywhen the budget is used as a basis for performance appraisal.

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Participative budgeting process is when all the employees of the company are involved in the preparation of the budget This approach to budget helps to motivate the employees to accomplish the budget as their involvement was made The employees would also See Answer

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