Which of the following statements relating to budgeting is NOT true? a) A budget is a formal document that quantifies a company’s plans for achieving its goals. b) Budgets are useful in the control process because they provide a basis for evaluating performance. c) A bottom-up approach to budgeting involves substantial input from lower level managers. d) Most managers believe that budgeting is more successful when a top-down approach rather than a bottom-up approach is used.
Which of the following statements relating to budgeting is NOT true? a) A budget is a formal document that quantifies a company’s plans for achieving its goals. b) Budgets are useful in the control process because they provide a basis for evaluating performance. c) A bottom-up approach to budgeting involves substantial input from lower level managers. d) Most managers believe that budgeting is more successful when a top-down approach rather than a bottom-up approach is used.
Chapter7: Budgeting
Section: Chapter Questions
Problem 6MC: Which of the following is true in a bottom-up budgeting approach? Every expense needs to be...
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Which of the following statements relating to budgeting is NOT true?
a) A budget is a formal document that quantifies a company’s plans for achieving its goals.
b) Budgets are useful in the control process because they provide a basis for evaluating performance.
c) A bottom-up approach to budgeting involves substantial input from lower level managers.
d) Most managers believe that budgeting is more successful when a top-down approach rather than a bottom-up approach is used.
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