Question

LO 7.1Which approach is most likely to result in employee buy-in to the budget?

top-down approach
bottom-up approach
total participation approach
basing the budget on the prior year

Answer 1

The correct answer is letter "B": bottom-up approach.

Step-by-step explanation:

The bottom-up budgeting approach is to give each department within a firm the power to set and control their budget according to the projects that the department intends to develop in line with the organization's ultimate goal. It may be beneficial as each department is likely to have a budget that is better adapted to their needs and promotes employee involvement during the budget determination process.