Which of the Following Is NOT True Regarding Top-Down Budgeting

question 2

Multiple Choice

Which of the following is NOT true regarding top-down budgeting?

• A) It is based on the collective judgments of top and middle managers.
• B) Overall project costs are estimated by top and middle managers and then passed on to the next lower level.
• C) The overall budget cost is generally not very accurate.
• D) Overlooking small but important tasks can lead to a serious budgetary problem.
• E) All of the above are true concerning top-down budgeting.

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Definitions:

Exchange Rate

The price of one country's currency in terms of another currency, determining how much foreign currency can be obtained with a certain amount of domestic currency.

Quota

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specific time period.

Foreign-Currency Exchange

The process of exchanging one country's currency for another's, often determined by market rates.

Budget Deficit

The situation in which a government's expenditures exceed its revenue, resulting in the need to borrow money or increase taxes.