Тестовый вопрос
Parma Co requires all divisions to prepare their own budgets and these are then approved by head office. The current managing director of Parma Co believes that it would be better if all budgets for the divisions are prepared centrally at head office, and divisional managers told that they must aim to achieve them. Which of the following is an advantage of non-participative budgeting as compared to participative budgeting?
Non-participative budgeting is generally less time consuming because it involves fewer people in the process. Centralized decision-making can be faster as it does not require the time-consuming process of gathering input from multiple divisions.