Managers would prefer a budget prepared______________________________. (Points : 1)
A by the budget committee
B utilizing the top-down approach
C utilizing the bottom-up approach
D utilizing none of the methods listed here
ANSWER C
To determine the preferred approach for preparing a budget, we should examine the options provided:
A. by the budget committee: This suggests that a group of individuals within the organization would be responsible for creating the budget. While this approach allows for collaboration and input from multiple perspectives, it may not be the preferred method for all managers.
B. utilizing the top-down approach: This approach involves the managers at the top levels of the organization setting the budget and then allocating it to the lower levels. This method is likely to be efficient and consistent with the manager's objectives, but it might not fully consider the specific needs and inputs of each department.
C. utilizing the bottom-up approach: This approach involves each department or individual within the organization creating their own budgets, which are then consolidated at higher levels. This method allows for active participation from various managers in creating their own budgets, which might result in more accurate forecasts and increased ownership. It also encourages collaboration, engagement, and accountability.
D. utilizing none of the methods listed here: This option suggests that there might be alternative methods or custom approaches that managers prefer, which are not mentioned in the given options.
Given the options provided, it appears that managers would prefer a budget prepared utilizing the bottom-up approach (Option C). This approach involves active involvement from departmental managers, which is likely to align with their goals, encourage collaboration, and result in more accurate budget forecasts.