Question

Bottoms Up budgeting:

Multiple Choice

• is top-down in nature.

• allows top management to set the budget.

• discourages multiple budget versions.

• is more likely to motivate people to work towards the organization's goals than a top-down approach.

Answer 1

Under Bottom Up budgeting, inputs for budgeting are taken from all level of employees and then budget is prepared.

All employees of the organization participate in the budgeting process to achieve the organization's goals.

Under top-down approach, the higher level management prepares the budget without involvement of lower level employees.

Bottom Up budgeting is more likely to motivate people to work towards the organization's goals than a top-down approach.

Option D is correct