Hierarchical control is most consistent with which of the following budget processes?
A) Bottom-up budgeting
B) Revenue budgeting
C) Operational budgeting
D) Top-down budgeting
E) Horizontal budgeting

Question

Quizplus · Accepted Answer

Hierarchical control is most consistent with top-down budgeting, where the budget is created by higher-level management and then passed down to lower levels for implementation. This type of control is characterized by centralized decision-making and a strong emphasis on top-down communication and direction. Bottom-up budgeting, revenue budgeting, and operational budgeting typically involve more decentralized decision-making and less hierarchical control. Horizontal budgeting emphasizes collaboration and communication across departments or teams, rather than hierarchical control.

Hierarchical Control Is Most Consistent with Which of the Following