Which of the following is true of participative budgeting 0

Which of the following is true of participative budgeting? 0 A. The budgeting process is quick, usually only requiring one-two weeks to complete. O B. Budgets are developed separately in a company\'s business segments so coordination is not necessary. O C. Preliminary budgets are developed by top management and flows down to the departmental level. O D. Budgets are more achievable because those impacted by the budget helped create it.

Solution

1st question:

D.Budgets are more acheivable because those impacted by the budget helped create it.

partcipative budgeting process involves departmental personnel in preparing budgets, so the targets set will be more acheivable.

Participative budgeting takes more time to complete.

Coordination is necessary.

2nd question:

B.management by exception.

Under management by exception, one only investigates variances which exceed certain dollar amount of certain percentage (such as 10% in this case).

Acitivity based costing is a method of allocating indirect costs.

Bench marking involves setting of standards.

Lean accounting is form of control on financial resources.