Oklahoma Telephone Company Has Been Forced by Competition to Put

Oklahoma Telephone Company has been forced by competition to put much more emphasis on planning and controlling its costs. Accordingly, the company's controller has suggested initiating a formal budgeting process. Which of the following steps will not help the company gain maximum acceptance by employees of the proposed budgeting system? (CMA adapted)

A) Implementing the change quickly.
B) Including in departmental responsibility reports only those items that are under the department manager's control.
C) Demonstrating top management support for the budgeting program.
D) Ensuring that favorable deviations of actual results from the budget, as well as unfavorable deviations, are discussed with the responsible managers.

Correct Answer:

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