For a budget to be most effective it is best prepared from a:
A) bottom up approach.
B) top down approach.
C) middle up approach.
D) middle down approach.

Question

Quizplus · Accepted Answer

In a bottom up approach, all the departments in an organization are asked to provide their budget requirements based on their objectives and goals. This information is then aggregated and compiled to create an overall budget for the organization. This approach allows for the involvement of all stakeholders and ensures that the budget reflects the specific needs and goals of each department. It also allows for greater transparency and accountability in budgeting. Therefore, a budget prepared from a bottom up approach is likely to be more effective.

For a Budget to Be Most Effective It Is Best