In a Top-Down Approach to Budgeting, What Occurs

question 49

Multiple Choice

In a top-down approach to budgeting, what occurs?

• A)The upper-level managers impose a budget without soliciting input from department managers.
• B)Lower-level managers are the primary source of information used in setting the budget.
• C)The production budget is developed before the sales budget.
• D)Each budget amount projected by upper-level managers is approved or disapproved by lower-level managers.

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Definitions:

Multiple Structures

The existence or creation of various organizational structures to support the diverse needs and strategies of a business.

Organizational Size

The magnitude of an organization based on aspects such as employee count, revenue, or operational scale.

Structure

The arrangement or organization of components into a coherent, systematic, or orderly whole.

Increased

The state of having become larger or greater in size, amount, number, or degree.