Two friends, Wei and Tee, are working as managers in two different organizations. Wei's job is to see that the budget that has been created and approved by top executives of the company is enacted. Tee's job is to see that the budget that has been created by all the managers of the organization and approved by higher authority is enacted. Which of the following statements is correct regarding Wei and Tee?
A) Wei uses a participative budget, while Tee uses a rolling budget.
B) Wei uses a participative budget, while Tee uses an imposed budget.
C) Wei uses a rolling budget, while Tee uses an imposed budget.
D) Wei uses an imposed budget, while Tee uses a participative budget.

Question

Quizplus · Accepted Answer

An imposed budget is a top-down budget that is created and approved at the top level of an organization and followed by managers throughout the organization. A participative budget is the result of the combined efforts of managers at all levels in the organization. All mangers sit together and create a budget that is then approved at a higher level with iterative adjustments.

Two Friends, Wei and Tee, Are Working as Managers in Two