Forrest, the CMA of Acme Widgets Corp., sets the spending limit for his teams and requires all spending to stay within the promotional budget.What type of budgeting is being used by Widgets Corp.?
A)bottom-up budgeting
B)top-down budgeting
C)the affordable method of budgeting
D)the arbitrary allocation method of budgeting
E)the percentage-of-sales method of budgeting

Question

Quizplus · Accepted Answer

This scenario describes top-down budgeting, where senior management sets the budget and imposes it on lower-level managers. Forrest, as a CMA, is likely in a middle management position and is given a spending limit rather than being involved in the budgeting process. The other budgeting methods do not apply to this situation.