B provide performance criteria c promote

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b. provide performance criteria. c. promote communication and coordination within the organization. d. limit unauthorized expenditures. 35. CSO: 1B2b LOS: 1B2e In developing the budget for the next year, which one of the following approaches would most likely result in a successful budget with the greatest amount of positive motivation and goal congruence? a. Permit the divisional manager to develop the goal for the division that in the manager’s view will generate the greatest amount of profits. b. Have senior management develop the overall goals and permit the divisional manager to determine how these goals will be met. c. Have the divisional and senior management jointly develop goals and objectives while constructing the corporation’s overall plan of operation. d. Have the divisional and senior management jointly develop goals and the divisional manager develop the implementation plan. 36. CSO: 1B2b LOS: 1B2e Which one of the following statements concerning approaches for the budget development process is correct ? a. The authoritative approach to budgeting discourages strict adherence to strategic organizational goals. b. To prevent ambiguity, once departmental budgeted goals have been developed, they should remain fixed even if the sales forecast upon which they are based proves to be wrong in the middle of the fiscal year. c. With the information technology available, the role of budgets as an organizational communication device has declined. d. Since department managers have the most detailed knowledge about organizational operations, they should use this information as the building blocks of the operating budget. 37. CSO: 1B2b LOS: 1B2e Which one of the following items would most likely cause the planning and budgeting system to fail? The lack of a. historical financial data. b. input from several levels of management. c. top management support. d. adherence to rigid budgets during the year.
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