Question

Self-imposed budgets typically are:

A. not critical to the success of a budgeting program.
B. not subject to review by higher levels of management since to do so would contradict the participative aspect of the budgeting processing.
C. subject to review by higher levels of management in order to prevent the budgets from becoming too loose.
D. not subject to review by higher levels of management except in specific cases where the input of higher management is required.

Answer 1

C. subject to review by higher levels of management in order to prevent the budgets from becoming too loose.

Step-by-step explanation:

Self-imposed budgets typically are subject to review by higher levels of management in order to prevent the budgets from becoming too loose.

Self-imposed budget also known as the participative budget is a type of budget where individuals having responsibility for controlling costs, prepares their own budget estimates and present them to the top level of management for review.