Company A uses a heavily participative budgeting approachwhereas at Company B, top management develops all budgets andimposes them on lower-level personnel. Which of the followingstatements is false?
A. A's employees will likely be more motivated to achieve budgetarygoals than the employees of Company B.
B. B's employees may be somewhat disenchanted because although theywill be evaluated against a budget, they really had little say inbudget development.
C. Budget padding will likely be a greater problem at CompanyB.
D. Budget preparation time will likely be longer at CompanyA.
E. Ethical issues are more likely to arise at Company A, especiallywhen the budget is used as a basis for performance appraisal.
