In the Context of Budget Preparation, Which of the Following

question 140

Multiple Choice

In the context of budget preparation, which of the following is an advantage of using bottom-up budgeting?

• A) It is less time consuming than the top-down approach.
• B) It eliminates the possibility of budgetary slack.
• C) Middle managers are likely to be highly motivated to achieve budgetary goals.
• D) Supervisory managers are likely to know the long-term strategic needs of a company.

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Definitions:

Carelessness

Lack of attention or diligence that can result in unintended harm or mistakes.

Negligence

The failure to take appropriate care in doing something, leading to damage or harm to someone else.

Holder

The individual or entity that possesses or controls a particular document, instrument, or security, having certain rights to it.

Drawee

A party upon whom a cheque or draft is drawn, typically a bank, responsible for paying the amount specified to the payee.