Answer (D) is correct . Ineffective budget control systems are characterized by each of the items noted. The use of budgets for planning only is a problem that must be resolved through the education process. Management must be educated to use the budget documents for control, not just planning. Management must learn that budgets can motivate and help individuals achieve professional growth as well as the goals of the firm. Ignoring budgets obviously contributes to the ineffectiveness of the budget system. Finally, feedback must be timely or lower management and employees will soon recognize that budget feedback is so late it provides no information, making the budget a worthless device.
Answer (A) is incorrect because This is not the only item listed that characterizes ineffective budget control systems.
Answer (B) is incorrect because This is not the only item listed that characterizes ineffective budget control systems.
Answer (C) is incorrect because This is not the only item listed that characterizes ineffective budget control systems.
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