Multiple Select QuestionSelect all that applyPotential negative outcomes of budgeting include: (Check all that apply.)Multiple select question.unnecessary spending.decreased communication.unethical behavior.budgetary slack.
Question
Multiple Select QuestionSelect all that applyPotential negative outcomes of budgeting include: (Check all that apply.)Multiple select question.unnecessary spending.decreased communication.unethical behavior.budgetary slack.
Solution
The potential negative outcomes of budgeting could include:
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Unnecessary spending: Sometimes, when a budget is set, there can be a tendency to spend up to the limit of the budget, even if all of the spending is not necessary. This can lead to wasteful spending.
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Decreased communication: If budgeting is not done collaboratively, it can lead to decreased communication. For example, if a manager sets a budget without consulting their team, the team may not understand the reasoning behind the budget and may not feel committed to sticking to it.
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Unethical behavior: In some cases, budgeting can lead to unethical behavior. For example, if a manager is under pressure to stay within a tight budget, they may be tempted to cut corners or engage in other unethical practices.
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Budgetary slack: This is when managers intentionally inflate their budget estimates in order to make their actual performance look better. This can lead to inefficient use of resources.
So, all of the options apply.
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