Question

Which of the following is true in a bottom-up budgeting approach? A. Every expense needs to be justified. B. Supervisors tell departments their budget amount and the departments are free to work within those amounts. C. Departments budget their needs however they see fit. D. Departments determine their needs and relate them to the overall goals.

Name: Problem 6, Chapter 7: Principles of Accounting, Volume 2: Managerial Accounting
Uploaded: 2020-12-31T02:05:27-08:00
Duration: 1 min 37 s
Channel: Aditya Sood
Description: Which of the following is true in a bottom-up budgeting approach? A. Every expense needs to be justified. B. Supervisors tell departments their budget amount and the departments are free to work within those amounts. C. Departments budget their needs however they see fit. D. Departments determine their needs and relate them to the overall goals.

   Which of the following is true in a bottom-up budgeting approach?
A. Every expense needs to be justified.
B. Supervisors tell departments their budget amount and the departments are free to work within those amounts.
C. Departments budget their needs however they see fit.
D. Departments determine their needs and relate them to the overall goals.

Principles of Accounting, Volume 2: Managerial Accounting

Mitchell Franklin,… 2nd Edition

Chapter 7, Problem 6

Instant Answer

Solved by Expert Aditya Sood

12/31/2020

Step 1

In this approach, each department head or manager allots funding for their own department. They create their own budget without considering the budgets of other departments. Show more…

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Which of the following is true in a bottom-up budgeting approach? A. Every expense needs to be justified. B. Supervisors tell departments their budget amount and the departments are free to work within those amounts. C. Departments budget their needs however they see fit. D. Departments determine their needs and relate them to the overall goals.

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Key Concepts

Departmental Autonomy

Departmental autonomy in budgeting refers to the freedom of individual departments to propose and manage budgets that directly reflect their operational needs and priorities. This approach encourages detailed justifications for expenses and often leads to budgets that are more closely aligned with the actual requirements of each department.

Bottom-Up Budgeting

Bottom-up budgeting is an approach where individual departments or units develop their own budgets based on their specific needs and operational insights. These separate budgets are then aggregated to form a comprehensive organizational budget, ensuring that the budgeting process involves input and accountability at the departmental level.

Budgeting

Budgeting is the process of planning and allocating financial resources over a specific period. It involves setting targets, estimating revenues and expenses, and ensuring that resources are used efficiently to meet an organization’s goals.

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