A. Program budgets are formulated by objective rather than function. This type of budget by itself will not motivate or demotivate managers.

B. Bottom-up budgeting is the budgeting technique that motivates lower-level managers the most. The budgeting process starts with departments at the lowest level in the organization. Managers and subordinates set goals and objectives and translate those goals and objectives into quantitative budgets for their responsibility centers. Then the budgets are sent on to the next highest level, which does the same thing, and so forth. At the top the company's budget is developed by consolidating all of the lower-level budgets. Of course, top management reviews the lower-level budgets as well as the consolidated budget that results from them. If the company's consolidated budgeted results are not what top management wants to see, top management may negotiate changes to the lower-level budgets as necessary to achieve the company's objectives. Employees are more likely to support budgets when they have participated in their preparation. It gives them a feeling of ownership of the process and they will be more likely to support the budget's implementation.

C. Zero-based budgeting is a budget which is prepared ignoring the past periods. The budget is developed from "zero" and all expenses need to be justified for the current period. The use of this method by itself is not going to motivate or demotivate managers.

D. Top-down budgeting is less motivating for managers as according to this budgeting technique the plan is set by top-management and lower level managers do not participate in preparing it.