The budgeting approach based on the collective judgments of top and middle managers is called:
A) top-down budgeting
B) bottom-up budgeting
C) activity budgeting
D) program budgeting
E) life cycle budgeting

Question

Quizplus · Accepted Answer

Top-down budgeting involves the budget being created by top-level management and then passed down through the organization. Middle managers are often involved in refining these budgets within their departments, but the initial direction and major decisions come from the top.

The Budgeting Approach Based on the Collective Judgments of Top