Helen Thomas, Amador Corporation's vice president of planning, has seen and heard it all. She has told the corporate controller that she is "....very upset with the degree of slack that veteran managers use when preparing their budgets."

Thomas has considered implementing some of the following activities during the budgeting process.

1. Develop the budgets by top management and issue them to lower-level operating units.

2. Study the actual revenues and expenses of previous periods in detail.

3. Have the budgets developed by operating units and accept them as submitted by a company-wide budget committee.

4. Share the budgets with all employees as a means to reach company goals and objectives.

5. Use an iterative budgeting process that has several "rounds" of changes initiated by operating units and/or senior managers.

Which one of these activities should Amador implement in order to best remedy Thomas's concerns, help eliminate the problems experienced by Amador, and motivate personnel?

A. 1 only.

B. 2 and 3.

C. 2, 4 and 5.

D. 2 and 4.