Top-Down Budgeting Methods Are Commonly Used Because Of

question 57

Multiple Choice

Top-down budgeting methods are commonly used because of:

• A)their effectiveness.
• B)upper management's desire for control.
• C)the growing availability of computer simulations.
• D)the ease with which a manager can assess the impact of sales on ROI.
• E)their quantitative nature.

---

Definitions:

Postdated Checks

Checks written with a date in the future, indicating that the check should not be processed until that date.

Drawee Bank

The financial institution upon which a check is drawn, responsible for paying the amount specified when the check is presented.

Drawer-Drawee Relationship

The financial interaction where the drawer writes a check and the drawee bank or financial institution pays the amount.

Checking Account

A bank account that allows for easy access to funds through checks and electronic means for everyday transactions.