The major difference between the top-down and bottom-up budgeting process is the _____.
A)resulting budget amount obtained
B)degree of employee/manager participation
C)starting amount in the budget
D)absence or presence of opportunity costs in the budgetary process

Question

Quizplus · Accepted Answer

The major difference between top-down and bottom-up budgeting is the degree of employee/manager participation. In top-down budgeting, the budget is set by senior management without input from lower-level employees or managers. In bottom-up budgeting, the budget is created by lower-level employees or managers and then reviewed and approved by senior management. The resulting budget amount obtained and the starting amount in the budget can vary depending on the specific organization and budgeting process used, and the presence or absence of opportunity costs is not a defining factor in the difference between top-down and bottom-up budgeting.

The Major Difference Between the Top-Down and Bottom-Up Budgeting Process