Top-Down Budgeting Refers to

question 61

Multiple Choice

Top-down budgeting refers to

• A) a budgeting system that begins with sales forecasts and works downwards to the raw materials budget.
• B) a budgeting systems that begins with budgeting the facility-level costs.
• C) a budgeting system where senior managers impose budget targets on junior managers.
• D) a budgeting system where there are frequent communications between top and bottom managers.

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Definitions:

Theory X

A management theory assuming that employees are inherently lazy and will avoid work if they can, implying that a strict control and supervision are necessary.

Type A Personality

A temperament characterized by high levels of competitiveness, self-motivation, aggressiveness, impatience, and a sense of urgency, often linked to stress and achievement in careers.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, leading to greater sales or margins and/or retaining more customers.

Union Avoidance

Strategies employed by employers to prevent the formation of unions and avoid collective bargaining, often focusing on employee satisfaction.