All of the Following Are Necessary for Budgets to Be

Multiple Choice

All of the following are necessary for budgets to be effective except:

A) Employees affected by a budget should be consulted when it is prepared.
B) Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
C) Goals should be challenging and attainable.
D) Managers must be aware of potential negative outcomes of budgeting, such as budgetary slack.
E) All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period.