- 1 Marks
Question
Where there is active involvement of all departmental managers in the budgeting process, the budgeting approach is known as:
A. Bottom-up budgeting approach
B. Continuous budgeting approach
C. Feedback budgeting approach
D. Top-down budgeting approach
E. Activity-based budgeting approach
Answer
Answer: A. Bottom-up budgeting approach
Explanation:
The bottom-up budgeting approach involves the active participation of all departmental managers in the budgeting process. It starts from the lower levels of the organization, where individual departments prepare their budgets and submit them for review. This method ensures that those who are directly involved in departmental operations contribute to the overall budget, leading to a more accurate and realistic financial plan.
- Tags: Budgeting, Decision Making, Departmental Involvement
- Level: Level 1
- Uploader: Dotse