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:

Promisee

The individual or entity to whom a promise or commitment is made, typically in a contractual agreement.

Benefiting Party

An individual or group that receives advantages or profits from a particular action or agreement.

Donee Beneficiary

A third party that benefits from a contract between two other parties, especially in a gift or donation context.

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of the involved parties.