Question

QUESTION 12 Chapter 7 discusses top-down budgeting vs. bottom-up budgeting. First, define top-down budgeting and bottom-up budgeting. Next, discuss the pros and cons of each. Finally, which method would you prefer as a manger? (you do not need to agree with the text) T T T T Paragraph Arial 3 (12pt) Q 5 Of Mashups HTML CSS Path: p Words:0

Answer 1

Top-down budgeting It works in a organisation from highest level to the lowesť level. The top of the organisation determines financial allowance for departments appropriately according to the imposed budget of the organisation for the lower levels Buttom op budgeting It works in a organisation from lowest level to the highest level - The budget which is decided by the low en-level and then they present it to the higher management for approval E Top-down Buttom op Advantages Advantages → It saves time and the budget is created energy for lower l by keeping in mind management becauses the needs of depart- the budget is created ment: by lower by higher management management

→ It is best because Motivation because of it creates budget at ownership to create one time. l budget. Disadvantages Disadvantages → Motivation level is → Budget is not decreased because I done at one time due to the lack of l because it should ownership of creating be shown to higher budget. management → Some people who are not involved → Targets will be in daily operations easy because may not be aware managers give easy of the budget targets to show that allocated to the their department is departments best:
I would prefer top down budgeting because it saves time and gives targets which will challenge us and helps us to improve our abilities.