Answer (D) is correct.
Ineffective budget control systems are characterized by each of the items
noted. The use of budgets for planning only is a problem that must be
resolved through the education process. Management must be educated
to use the budget documents for control, not just planning. Management
must learn that budgets can motivate and help individuals achieve
professional growth as well as the goals of the firm. Ignoring budgets
obviously contributes to the ineffectiveness of the budget system.
Finally, feedback must be timely or lower management and employees
will soon recognize that budget feedback is so late it provides no
information, making the budget a worthless device.