HWK Ch 7 - Ch 7 Pg 318(Q#1 15 P#1 6 1 What are the...

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Ch 7 Pg. 318 (Q#1, 15, P#1, 6) 1. What are the advantages of top-down budgeting? Of button-up budgeting? What is the most important task for top management to do in bottom-up budgeting? The top-down budgeting, is broken down into enhanced detail, starting from the most aggregated level. One advantage of the top-down process is at this level. Budgets can be developed pretty accurately. The budget categories are stable as a percent of the total budget and the statistical distribution of each category are stable. This makes for high predictability which is good. Another advantage is that each task needs to be individually indentified, eliminating the feat that important aspects are overlooked. For the bottom-up budgeting process, most advantages are associated with participative management. Individuals closer to the work have a more accurate idea of resources requirements than their superiors or others not personally involved. Another advantage is the involvement is a good tool for training and experience in budget preparation and knowledge of operations. Most important task for top management in bottom-up budgeting is
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HWK Ch 7 - Ch 7 Pg 318(Q#1 15 P#1 6 1 What are the...

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