What is a common result of the bottom-up budgeting approach?
Understand the Problem
The question is asking about the outcomes or consequences of using the bottom-up budgeting approach in financial management, specifically looking for a common result among the provided options.
Answer
Greater employee buy-in.
A common result of the bottom-up budgeting approach is greater employee buy-in.
Answer for screen readers
A common result of the bottom-up budgeting approach is greater employee buy-in.
More Information
Bottom-up budgeting involves employees in the budgeting process, enhancing their sense of value and involvement. This contributes to increased morale and commitment.
Tips
A common mistake is underestimating the potential for overspending when departments provide their own budgets without coordination with overall company objectives.
Sources
- Corporate Finance Institute - Top-down vs. Bottom-up Budgeting - corporatefinanceinstitute.com
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