John is a subunit manager at a large consumer packaged goods manufacturer.Every year,he and the managers of the other subunits determine how much is needed to achieve their objectives,and the amounts are then combined to establish the total marketing budget.This is an example of _____ budgeting.
A) top-down
B) bottom-up
C) top-down/bottom-up
D) bottom-up/top-down
E) combination

Question

John is a subunit manager at a large consumer packaged goods manufacturer.Every year,he and the managers of the other subunits determine how much is needed to achieve their objectives,and the amounts are then combined to establish the total marketing budget.This is an example of _____ budgeting.
A) top-down 
B) bottom-up 
C) top-down/bottom-up 
D) bottom-up/top-down 
E) combination

Quizplus · Accepted Answer

This is an example of bottom-up budgeting, where the subunit managers determine the amount needed to achieve their objectives and then combine the amounts to establish the total marketing budget. In top-down budgeting, the total budget is determined by senior management and then allocated to subunits. Top-down/bottom-up combines elements of both approaches, while bottom-up/top-down reverses the order of decision-making. Combination budgeting involves using multiple methods of budgeting within the same organization.

John Is a Subunit Manager at a Large Consumer Packaged