All of the following are necessary for budgets to be effective except:
A. Goals should be challenging and attainable.
B. Employees affected by a budget should be consulted when it is prepared.
C. Evaluations should be made carefully with opportunities to explain differences between actual and budgeted amounts.
D. Managers must be aware of potential negative outcomes of budgeting, such as budgetary slack.
E. All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period
Answer: E. All budgeted amounts must be spent to ensure that budgets aren't reduced for the next period
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