When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures,a _____ approach is being used.
A)bottom-up
B)marginal contribution
C)top-down
D)Delphi
E)contribution forecast

Question

Quizplus · Accepted Answer

When higher-level executives determine the budget amounts to be allocated for each department's advertising expenditures, a top-down approach is being used. This approach involves setting a budget at the highest level of the organization and then allocating it down to lower levels based on their needs and priorities. In contrast, a bottom-up approach involves departments submitting their own budget proposals, which are then aggregated to determine the overall budget. Marginal contribution, Delphi, and contribution forecast are not relevant to the budget allocation process.

When Higher-Level Executives Determine the Budget Amounts to Be Allocated