Participative Budgeting Has Which of the Following Potential Problems

Multiple Choice

Participative budgeting has which of the following potential problems?

A) building slack into a budget
B) encourages individual behavior that is in basic conflict with the goals of the organization
C) using budgets as a part of performance evaluations could lead to unethical behavior
D) managers take action that will improve performance in the short run but has long-term consequences