Top-down budgeting methods are commonly used because of:
A) Their effectiveness
B) Upper management's desire for control
C) Their quantitative nature
D) The ease with which a manager can assess the impact of sales on ROI

Question

Quizplus · Accepted Answer

Top-down budgeting methods are driven by upper management's desire for control over the organization's finances. In this approach, the budget is created at the top level of the organization and then passed down to lower levels for implementation. This provides upper management with greater control and oversight over the organization's financial activities. While top-down budgeting methods can be effective in certain situations, they may not always be the best approach for all organizations.

Top-Down Budgeting Methods Are Commonly Used Because Of