When 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) contribution forecast

Question

Quizplus · Accepted Answer

A top-down approach to budgeting involves higher-level executives setting overall spending limits and then allocating funds to different departments or areas. This type of approach is commonly used in larger organizations where budget oversight is centralized, and decisions are made at the upper levels of management. In contrast, a bottom-up approach involves lower-level employees providing input on budget needs, and then these figures are evaluated and reconciled with overall budget limitations.

When Executives Determine the Budget Amounts to Be Allocated for Each