Brad is a department manager at Home Theater, Inc. His sole role in the budget process is to implement the budget that is developed for him. This is an example of:
A) strategic budgeting.
B) operational budgeting.
C) top-down budgeting.
D) management by objectives.
E) bottom-up budgeting.

Question

Quizplus · Accepted Answer

Brad's role, where the budget is developed for him and his responsibility is solely to implement it, is an example of top-down budgeting. In top-down budgeting, decisions and the budget itself are formulated at the top level of the organization and then passed down through the hierarchy for implementation.

Brad Is a Department Manager at Home Theater, Inc