B. 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.

C. 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.

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