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polet [3.4K]
2 years ago
10

LO 7.1What are the advantages and disadvantages of the bottom-up budgeting approach?

Business
1 answer:
geniusboy [140]2 years ago
4 0

Answer:

 The following are the disadvantages and the advantages of bottom-up budgeting approach are as follows:

<u>  Advantages of bottom-up budgeting approach:</u>

  • The bottom-up budgeting approach helps in making the decisions very quickly as compared to all other budgeting methods.
  • The main benefit of the bottom-up budgeting approach is that it helps in aligned the project goals in an organization by giving the specific direction.
  • It helps in understand the resources, needs, expenses and the cost of each department in an organization.

<u> Disadvantages of bottom-up budgeting approach:</u>

  • The bottom-up budgeting approach is complex as it sometimes cause misrepresent the budget figures in the given data.  
  • In this budgeting method there is also a lack of context and also expertise.  
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