Question

All of the following are advantages of self-imposed budgets except:_______.

a. Budget estimates prepared by front-line managers are often more accurate and reliable than estimates prepared by top managers who have less intimate knowledge of markets and day-to-day operations.
b. Motivation is generally higher when individuals participate in setting their own goals than when the goals are imposed from above.
c. Individuals at all levels of the organization are recognized as members of the team whose views and judgments are valued by top management
d. Self-imposed budgeting may allow lower-level managers to create budgetary slack.

Answer 1

a. Budget estimates prepared by front-line managers are often more accurate and reliable than estimates prepared by top managers who have less intimate knowledge of markets and day-to-day operations.

Explanation:

The following is the exception in the self-imposed budgets among other listed statements.