Which approach to budget preparation is being applied when organizations allow middle and supervisory managers to actively participate in the creation of the budget?
A) bottom-down
B) bottom-up
C) top-down
D) middle-up

Question

Quizplus · Accepted Answer

When organizations allow middle and supervisory managers to actively participate in the creation of the budget, the approach being applied is known as the bottom-up approach. This is because the budgeting process begins at the lower levels of the organization and moves upwards, with input and feedback from managers at each level being incorporated into the final budget. This approach is often seen as more inclusive, as it allows those who are closest to day-to-day operations to have a say in the budgeting process.

Which Approach to Budget Preparation Is Being Applied When Organizations