An Advantage of Top-Down Budgeting Is

question 109

Multiple Choice

An advantage of top-down budgeting is:

• A)that top management estimates of project costs are often quite accurate,at least in aggregate.
• B)an elimination of the friction between top and lower levels in the competition for budget money.
• C)that projects are no longer a zero-sum game among lower level managers.
• D)that top management budgets,by definition,cannot experience overruns.

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Definitions:

Procedure

A sequence of actions or steps taken to achieve a particular end.

Broad Guideline

General principles or recommendations that provide direction without being overly prescriptive or detailed.

Fixed Budget

A budget that remains constant, regardless of changes in business activity levels, revenues, or expenses.

Allocates

The process of distributing resources or tasks among people or places, typically according to a plan.