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ACCA PM · Chapter 10 · Question 9 of 9

Hopwood identified three styles of using budget information to evaluate managers. Under which style is a manager judged mainly on the ability to meet the budget in the short term, with little regard to other measures?

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Reveal answer & explanation

Correct answer: D) Budget-constrained style

Explanation

In the budget-constrained style, meeting short-term budget targets is the main criterion, which can cause stress and manipulation of data. The profit-conscious style focuses on long-term effectiveness, and the non-accounting style places little emphasis on budget data. 'Participative' describes how budgets are set, not one of Hopwood's evaluation styles.

All 9 questions in Chapter 10Budgetary systems and types of budget MCQs with answers

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