Katrina Aldridge
The yearly auditing review of Pilgrim Industries is scheduled for next month. Katrina Aldridge is preparing for that audit and is also preparing her budget for the coming year.
-In planning and budgeting for the next 12 months, Katrina is participating in a budgeting process in which lower-level managers anticipate their departments' resource needs and pass them up to top management for approval. This budget process is an example of:
A) zero-based budgeting.
B) bottom-up budgeting.
C) top-down budgeting.
D) balance sheet budgeting.
E) none of these.

Question

Quizplus · Accepted Answer

The budget process described is an example of bottom-up budgeting, where lower-level managers anticipate resource needs and pass them up to top management for approval. Zero-based budgeting involves starting each budget from scratch and justifying every expense, top-down budgeting involves senior management setting the budget and allocating resources to lower-level managers, and balance sheet budgeting focuses on balancing assets and liabilities rather than anticipating resource needs.

Katrina Aldridge the Yearly Auditing Review of Pilgrim Industries Is Scheduled for Scheduled