A budgeting process in which middle and lower level managers set their budget targets in accord with overall organisational revenues and expenditures as specified by top management is an example of:
A) strategic budgeting
B) operational budgeting
C) top-down budgeting
D) management by objectives
E) bottom-up budgeting.

Question

Quizplus · Accepted Answer

The description given in the question is an example of bottom-up budgeting, where budget targets are set by lower level managers and are then aggregated and reviewed at higher levels of management. This approach allows for greater participation and input from those closest to the day-to-day operations of the organization, leading to a more accurate and realistic budget.

A Budgeting Process in Which Middle and Lower Level Managers