Hierarchical control is most consistent with
A) bottom-up budgeting.
B) top-down budgeting.
C) operational budgeting.
D) revenue budgeting.
E) horizontal budgeting.

Question

Quizplus · Accepted Answer

Hierarchical control implies that decisions and directives flow from top-level management down to lower-level employees. Top-down budgeting follows the same principle, with senior managers creating and approving the budget and then delegating responsibility for implementation to their subordinates. Therefore, top-down budgeting is most consistent with hierarchical control.

Hierarchical Control Is Most Consistent with