How Are Top-Down and Bottom-Up Budgets Created? What Advantages Does

question 74

Essay

How are top-down and bottom-up budgets created? What advantages does each approach hold over the other?

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Definitions:

Initial Investments

The initial amount of money used to purchase an asset or start a business.

Partnership

A partnership is a legal form of business operation between two or more individuals who share management and profits.

Generally Accepted Accounting Principles

The standard framework of guidelines for financial accounting used in any given jurisdiction.

Salary Allowance

A mechanism for dividing earnings of a partnership based on personal services provided by the partners (not an expense).