What Are the Steps Involved in the Bottom-Up Budgeting Process

question 79

Essay

What are the steps involved in the bottom-up budgeting process?

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Definitions:

Return on Total Assets

A profitability ratio measuring how efficiently a company uses its assets to generate profit.

Consolidated Financial Statements

Financial statements that integrate all assets, liabilities, equity, income, and expenses of a parent company and its subsidiaries, presenting the financial performance of the entire corporate group as a single entity.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of the investee's profits or losses.

Investment Accounts

Accounts held at a financial institution that hold investments such as stocks, bonds, mutual funds, and ETFs, often for purposes of earning a return.