CAF-7 · Chapter 11 · Question 10 of 15
The concept of 'Goal Congruence' in budgeting refers to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Aligning the personal and departmental goals of managers with the overall strategic goals of the organization
Explanation
Goal congruence is achieved when the budgeting and performance measurement systems encourage individual managers to act in ways that simultaneously achieve their own personal/departmental objectives and the overall goals of the company.
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