_____ is the budgetary approach that begins with an estimate from the highest ranking executives of the pay increase budget for an entire organization.
A)Bottom-up budgeting
B)Top-down budgeting
C)Managerial plan
D)Executive estimate budgeting

Question

Quizplus · Accepted Answer

Top-down budgeting is the approach where the highest-ranking executives estimate the pay increase budget for the whole organization. This approach is suitable for large organizations where the executives have an overview of the entire company's financial situation and can make informed decisions. Bottom-up budgeting, on the other hand, begins with estimates from lower-level managers and employees and is suitable for smaller organizations where employees have a better understanding of their department's needs. Managerial plan and Executive estimate budgeting are not recognized budgetary approaches.

_____ Is the Budgetary Approach That Begins with an Estimate