US CMA Part 1 · Chapter 2 · Question 30 of 30
A budgeting and performance evaluation system is said to achieve goal congruence when:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Managers pursuing their own objectives are also led to act in the best interests of the organization as a whole
Explanation
Goal congruence exists when individual and departmental goals align with organizational goals, so that self-interested decisions also benefit the company. Equal increases, perfect accuracy and imposed budgets do not guarantee this alignment.
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