Bottom-up budgeting differs from top-down budgeting in that the former ______.
A) looks at the size of the budget deficit
B) looks at the overall picture
C) emphasizes incrementalism
D) looks at the budget's role in macroeconomic policy

Question

Quizplus · Accepted Answer

Bottom-up budgeting starts with identifying the needs and priorities of specific programs and departments and incrementally builds up the budget. It emphasizes a more detailed and participatory approach compared to top-down budgeting, which starts with an overall budget limit set by higher authorities and then allocates funds to different programs and departments based on their perceived importance. Bottom-up budgeting enables more effective resource allocation and responsiveness to local needs, but it can also lead to higher administrative costs and difficulties in coordinating different activities. Options A, B, and D all relate to macro-level considerations or outcomes that can influence both bottom-up and top-down budgeting.

Bottom-Up Budgeting Differs from Top-Down Budgeting in That the Former