An Advantage of Top-Down Budgeting Is

question 90

Multiple Choice

An advantage of top-down budgeting is:

• A)That top management estimates of project costs are often quite accurate,at least in aggregate.
• B)An elimination of the friction between top and lower levels in the competition for budget money.
• C)That projects are no longer a zero-sum game among lower level managers.
• D)That top management budgets,by definition,cannot experience overruns.

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Definitions:

Sample Means

The average values calculated from samples, used as estimates of the population mean.

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared deviations from the mean.

Binomial Random Variable

A type of random variable that follows a binomial distribution, signifying the number of successes in a series of independent trials.

Normal Approximations

The use of the normal distribution to approximate the distribution of sample statistics for large sample sizes, even if the data itself is not normally distributed.