The Major Difference Between the Top-Down and the Bottom-Up Budgeting

question 105

Multiple Choice

The major difference between the top-down and the bottom-up budgeting process is ________.

• A) whether the budget request is raised or lowered
• B) the degree of centralization in the budgetary process
• C) whether zero or incremental budgeting is used
• D) the time interval between initial budget setting and the end of the budgetary process

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price within a specific time period.

Surplus

An excess of production or supply over demand.

Quantity Supplied

The amount of a good or service that producers are willing to sell at a given price over a specific period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.