When executives determine the budget amounts to be allocated for each department's advertising expenditures, a ________approach is being used.
A) contribution forecast
B) top-down
C) bottom-up
D) marginal contribution

Question

Quizplus · Accepted Answer

In a top-down approach, the overall budget is determined first and then the allocation for each department is decided based on the company's strategic goals and priorities. This approach is usually used by executives who have a broad perspective of the company's financial situation and can make informed decisions about allocation. Therefore, a top-down approach is the best choice for the scenario described in the question.

When Executives Determine the Budget Amounts to Be Allocated for Each