The major difference between the top-down and the bottom-up budgeting process is ________.
A) whether the budget request is raised or lowered
B) the degree of centralization in the budgetary process
C) whether zero or incremental budgeting is used
D) the time interval between initial budget setting and the end of the budgetary process

Question

Quizplus · Accepted Answer

The major difference between top-down and bottom-up budgeting is the degree of centralization in the budgetary process. Top-down budgeting is highly centralized, with budget decisions made at the top levels of management and then cascaded down to lower levels. Bottom-up budgeting is highly decentralized, with budget decisions made at lower levels of management and then aggregated up to higher levels. The other options listed are not accurate differences between the two approaches.

The Major Difference Between the Top-Down and the Bottom-Up Budgeting