Applying This Chapter 1. Your company is considering switching from a top-down b
ID: 419893 • Letter: A
Question
Applying This Chapter 1. Your company is considering switching from a top-down budget process to a bottom-up process. As a project manager in the new product development group, you are in favor of being able t u budgets using a bottom-up method and have been asked to reasons for your preference at the next senior management plannin ing. What benefits of bottom-up budgeting will you highlight to senior management? How might you respond to upper management's con that bottom-up budgets are often more costly than top-down budgets? share th concernsExplanation / Answer
The advantages of bottom up budgeting that I will highlight to the senior management is as follows:
-Budgeting by all departments according to their expenses and incomes give accurate figures which helps the organization to stick to the budget rather than the need of alterations later on.
- it helps in getting an involved knowledge and experince of members from all departments for the making of the budget
- It increases the morale and motivation of employees as their participation in the budget making process is an essential part and in doing so employees feel important and responsible towards making and following the budget.
- Helps in encouraging team work as different deaprtments collaborate together in accumulating past figures and anticipating future accounts. Such dependancy of departments on one another increases inter personal relations which help in health work atmosphere.
- Since the budgeting is in the hands of department managers and members the top management can concentrate on the bigger strategies of the business management and operations.
Even though these budgeting may be a little costly than the top-down approach but with the accuracy and reliability it gives and the advantages mentioned above are good enough for the company to consider following it rather than the top-down budgeting system
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.