What is the difference between top-down and bottom-up budgeting?

What is the difference between top-down and bottom-up budgeting?

• A. Combined approaches are common
• B. Top-down sets targets from management; bottom-up builds budgets from individual activities; combined approaches are common
• C. Bottom-up sets targets from management; top-down builds budgets from individual activities
• D. Top-down budgets are always superior

Answer: (B)