Top-down budgeting methods are commonly used because of:
A)their effectiveness.
B)upper management's desire for control.
C)the growing availability of computer simulations.
D)the ease with which a manager can assess the impact of sales on ROI.
E)their quantitative nature.

Question

Quizplus · Accepted Answer

Top-down budgeting methods are driven by upper management and their desire for control. This type of budgeting involves setting a budget at the highest level and then allocating funds down to lower levels within the organization. Upper management sets the overall financial goals and objectives and then delegates responsibility down the organizational hierarchy to ensure the goals are met.

Top-Down Budgeting Methods Are Commonly Used Because Of