The major difference between top-down and bottom-up budgeting is based upon the direction of the flow of information.

Question

Quizplus · Accepted Answer

Top-down budgeting involves setting a budget at the organizational level and then allocating resources to individual departments, while bottom-up budgeting involves individual departments submitting budget proposals that are consolidated at the organizational level. Thus, the major difference is indeed based on the direction of the flow of information.

The Major Difference Between Top-Down and Bottom-Up Budgeting Is Based