Comparison Of Budgeting Methods
How does zero-based budgeting differ from top-down budgeting?
AZero-based budgeting is conducted by lower-level management, whereas top-down budgeting is conducted by upper-level management.
BZero-based budgeting does not incorporate the previous year's performance or actual results, whereas top-down budgeting does.
CTop-down budgeting is preferred when there is ample time to prepare, whereas zero-based budgeting is best when managers are thoroughly familiar with organizational expenses.
DTop-down budgeting does not consider the state of the economy, whereas zero-based budgeting does.
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