Angela is part of the senior management of Fifian Inc., an event management company. She along with other members of the senior management plans the annual budget of the company. Angela, however, is not required to take inputs from or involve the middle and supervisory managers of the company in this planning process. In the given scenario, Fifian Inc. most likely uses _____.
A)top-down budgeting
B)incremental budgeting
C)bottom-up budgeting
D)zero-based budgeting

Question

Quizplus · Accepted Answer

In top-down budgeting, the senior management sets the budget without taking input from lower-level managers. Since Angela is part of the senior management and doesn't involve middle or supervisory managers in the planning process, Fifian Inc. is most likely using top-down budgeting. Incremental budgeting involves using the previous year's budget as the starting point and making adjustments, while bottom-up budgeting involves input and feedback from lower-level managers. Zero-based budgeting involves starting from scratch and justifying every expense. None of these methods are mentioned in the scenario.

Angela Is Part of the Senior Management of Fifian Inc