Question

A budgeting approach that implies little or no input from lower levels of management is known as the:

A. top-down approach.
B. zero based approach.
C. proportionate increase approach.
D. participative approach.

Answer 1

The top-down approach to budgeting involves senior management dictating budget goals with little input from lower management levels.

Step-by-step explanation:

The budgeting approach that implies little or no input from lower levels of management is known as the top-down approach. In this approach, senior management establishes budget goals and imposes them on the rest of the organization. This is in contrast to a participative approach, where there is more involvement from lower levels of management in the budgeting process. The zero-based approach involves building a budget from scratch, justifying each expense, rather than basing it on previous budgets, while the proportionate increase approach would apply a consistent percentage increase to past budget figures.