A. This is not a disadvantage of top-down budgeting. A top down budget does not require as much development time, as fewer voices must be heard.

B. This is a disadvantage of top-down budgeting. When senior management dictates the budget, lower level managers and their staff may not only not accept the budget, but they may also not accept senior management’s goals and objectives on which the budget is based. Senior management may very well be unaware of opportunities and strengths within their divisions. Often these opportunities are introduced by divisional management personnel who can see from the ground level how an opportunity can be capitalized upon. These leads are often unknown to senior management.

C. This is a disadvantage of top-down budgeting. A participatory budget process provides management at all levels an opportunity to solicit ideas from employees. Without this approach, communication between employees and management is reduced, as employees may not feel as open to voicing opinions.

D. This is a disadvantage of top-down budgeting. Senior management may decree a desired outcome that is unrealistic under current working conditions. Senior management is not generally as familiar with day to day tasks and constraints as lower level managers and employees would be.