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Management · Q177

Management Information System (MIS)

Graduate and Post Graduate · Management · question 177

Q177

__________ type of budgeting is based on estimation of total project cost by the top management.

A.
top-down
Answer
B.
bottom-up
C.
neural
D.
zero-based

Answer: Option A

Solution

Answer: Option A
Solution:
Top-down type of budgeting is based on estimation of total project cost by the top management. Top-down budgeting is a budgeting method in which senior management develops a high-level budget for the company. Once the top-level numbers are created, amounts are allocated to individual functions or departments that must create a detailed budget with their allocation.