Which of the following is not true regarding top-down budgeting?
A) It is based on the collective judgments of top and middle managers.
B) Overall project costs are estimated by top and middle managers and then passed on to the next lower level.
C) The overall budget cost is generally not very accurate.
D) Overlooking small but important tasks can lead to a serious budgetary problem.
E) All of the above are true concerning top-down budgeting.

Question

Quizplus · Accepted Answer

Top-down budgeting is based on estimates from higher-level managers and passed down to lower-level managers. While this approach can be effective for setting overall targets and objectives, it is often criticized for not being accurate in forecasting detailed costs and overlooking important tasks. Therefore, Option C, which suggests that the overall budget cost is generally accurate, is not true.

Which of the Following Is Not True Regarding Top-Down Budgeting