Which one of the following would most likely cause an unrealistic budget to result?
A)All levels of management contributed to its development.
B)The budget has been developed in a participative approach.
C)The budget was developed after considerable planning.
D)The budget has been developed in a top-down fashion.

Question

Quizplus · Accepted Answer

When a budget is developed in a top-down fashion, it means that the senior management imposes financial targets on the lower levels of management without considering their input or feedback. This approach can lead to unrealistic budgets, as the lower-level managers may not have the necessary information to achieve the imposed targets or understand the operational realities of the business.

Which One of the Following Would Most Likely Cause an Unrealistic