712-50 · Question #365
Where does bottom-up financial planning primarily gain information for creating budgets?
The correct answer is C. By adding the cost of all known individual tasks and projects that are planned for the next. Bottom-up financial planning primarily gains information for creating budgets by adding the cost of all known individual tasks and projects that are planned for the next budgetary cycle. This approach involves each department listing its anticipated costs and projects in…
Question
Where does bottom-up financial planning primarily gain information for creating budgets?
Options
- ABy adding all capital and operational costs from the prior budgetary cycle, and determining
- BBy reviewing last year's program-level costs and adding a percentage of expected additional
- CBy adding the cost of all known individual tasks and projects that are planned for the next
- DBy adding all planned operational expenses per quarter then summarizing them in a budget
How the community answered
(31 responses)- A6% (2)
- B3% (1)
- C77% (24)
- D13% (4)
Explanation
Bottom-up financial planning primarily gains information for creating budgets by adding the cost of all known individual tasks and projects that are planned for the next budgetary cycle. This approach involves each department listing its anticipated costs and projects in detail, such as employee expenses, equipment costs, and administrative expenses, which are then summed up to form the total budget from the bottom level up the organizational hierarchy.
Topics
Community Discussion
No community discussion yet for this question.