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