Which of the following is a drawback of having the budget under the CEO?

Having the budget under the CEO can lead to less coordination with other finance functions because the CEO's focus is often on the overall strategic vision and direction of the organization. When budgeting is centralized under the CEO, it may become more challenging for other finance functions to effectively collaborate and integrate their expertise into the budget process, which is essential for ensuring comprehensive financial planning.

Effective budgeting typically requires input and coordination from various departments such as accounting, investment, and financial analysis. When these functions are not adequately integrated into the budgeting process, it can result in a lack of alignment between the budget and the operational needs of the organization. This disconnect might hinder the organization's ability to respond to changing circumstances and effectively allocate resources.

In contrast, other options might suggest benefits that arise from having the budget under the CEO but do not adequately capture the collaborative nature that is often necessary for successful budgeting. Higher priority in policy development, increased objectivity, and more effective leadership can all be positive aspects of having the budget under a strong leader; however, they do not negate the potential coordination challenges that can arise when budgeting is separated from finance's broader operational context.