Description: Answer the following questions

What are the advantages of top-down budgeting? What is the most important task for top management to do in bottom-up budgeting? How does a risk analysis operate? How does a manager interpret the results?

Solution

Advantages of top-down budgeting

The top-down budgeting method is easy and accurate to develop hence giving a more precise budget of the project. The technique gives stable budget categories and statistical distribution, making the predictability easy. Moreover, the method is small and expensive tasks do not have to be identified individually, and it eliminates the fear of overlooking small and important aspects.

Advantages of bottom-down budgeting

The main advantage is participative management,……………………………….To access the rest of the solution for $5, please click on the purchase button.