Gabriel has worked for Cartoon Express Manufacturing for the last three years as warehouse manager for the company's distribution center. He received next year's budget from finance, and in reviewing the budget, he noticed that there was not any money for a new piece of equipment that he wants to buy to improve stocking shelves in the warehouse. Gabriel makes a change to include the equipment purchase in his budget and sends it back to finance. The budget was returned to him without the new equipment and with a note from finance that told him additions to the budget are made by headquarters, and he cannot change the budget. Which of the following is true?
A) Cartoon Express Manufacturing is a centralized decision-making organization that uses a rolling budget.
B) Cartoon Express Manufacturing is a centralized decision-making organization that uses an imposed budget.
C) Cartoon Express Manufacturing is a decentralized decision-making organization that uses an imposed budget.
D) Cartoon Express Manufacturing is a decentralized decision-making organization that uses a rolling budget.

Question

Quizplus · Accepted Answer

A budget created and approved by top executives and then forced down on the organization is an imposed budget. Because the budget is created by headquarters, the organization of the company should be considered centralized.

Gabriel Has Worked for Cartoon Express Manufacturing for the Last