What Is a Disadvantage of the "Bottoms-Up" Approach to Budgeting

question 65

Multiple Choice

What is a disadvantage of the "bottoms-up" approach to budgeting?

• A)Lower level management is not apt to know as much about their specific area as upper management who has a better view of the overall picture.
• B)When lower management is part of the budgeting process they are less likely to "buy into it".
• C)It is time consuming and therefore more costly.
• D)It is more apt to be widely seen as unrealistic than is the case with a "top-down" approach.

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Definitions:

Repetitive Process

A series of actions or operations that are performed over and over again, usually in a manufacturing or production setting.

Process Chart

A visual representation of the steps involved in a process, showing the sequence of tasks and decisions needed to complete a task or process.