A Comparison Of Top-Down To Bottom-Up Budgeting

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Executive Summary

There are two major approaches to coming up with budgets for any home, small business, or larger company: the traditional method of budgeting is known as bottom-up budgeting, though many businesses and corporations, along with the United States government, are moving more towards top-down budgeting, particularly during times of fiscal stress. This paper provides a brief overview of the advantages and disadvantages of both top-down budgeting and bottom-up budgeting.

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