Answer (D) is correct . Participative (grass-roots) budgeting and standard-setting use input from lower-level and middle-level employees. Participation encourages employees to have a sense of ownership of the output of the process. The result is an acceptance of and commitment to the goals expressed in the budget.
Answer (A) is incorrect because Disadvantages of participative budgeting and standard-setting include the cost in terms of time and money.
Answer (B) is incorrect because The quality of participation is affected by the goals, values, beliefs, and expectations of those involved.
Answer (C) is incorrect because An advantage of participative budgeting is that it yields information known to employees but not to management.
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