A. A budget is a very useful tool in a number of areas: planning, control, evaluation, motivation, communication, identifying future problems. However, when top management sets the budget without any participation from those who will be responsible for meeting the budgeted goals, employees will not have a sense of ownership of the plan. This will not be motivating and thus, not very effective.

B. Participation in the budgetary process would motivate managers by giving them a sense of ownership of the budget.

C. Holding subordinates accountable for the items they control would most likely motivate managers and encourage a better performance.

D. Management by exception lets managers concentrate their attention on areas where problems are. This will likely be a motivating item for managers as they will feel that their efforts are being directed where they are needed.