07 Dec Define the following budgets per Daft (2021): zero-based budgeting, top-down budgeting, and bottom-up budgeting
Budgetary Control
From the chief financial officer to the department manager, one of the most important control devices a manager has is their budget. A budget is created for every business division for most companies and then trickles down to the department level. Each manager has their own cost, or responsibility center used to control expenditures. The most common types of budgets are expense, revenue, cash, and capital budgets. For this discussion, you will look at different approaches to an expense budget.
As a group, define the following budgets per Daft (2021): zero-based budgeting, top-down budgeting, and bottom-up budgeting.
Provide the advantages and disadvantages of each approach.
Apply each approach to a real-world example.
If/when you are a department leader, which approach would you advocate for and why?
