Bottom Up Budgeting: Definition, Process & Advantages


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This form of budgeting starts with an overall number and then breaks down into each department.

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1. Bottom-up budgeting starts with _____ expenses to arrive at a total departmental budget amount.

2. Once each department has built its budget, what is the next step in the budgeting process?

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About This Quiz & Worksheet

What is bottom-up budgeting? The quiz and worksheet help gauge your knowledge of this form of budgeting, its benefits, and how it works.

Quiz & Worksheet Goals

These materials help test your understanding of:

  • What bottom-up budgeting starts with
  • Form of budgeting that starts with an overall number and then breaks down into each department
  • Perceived advantages of a bottom-up budgeting model
  • Calculating a total department budget
  • The next step after each department has built a budget

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on bottom-up budgeting
  • Information recall - access the knowledge you have gained about how bottom-up budgeting starts
  • Making connections - use understanding of the concept of bottom-up budgeting and its benefits

Additional Learning

Reviewing more about this form of budgeting is possible if you work through the lesson named Bottom Up Budgeting: Definition, Process & Advantages. Using this lesson, you can cover the following objectives at your own pace:

  • Determine why budgets are important
  • Identify the cons of bottom-up budgeting
  • Review examples of companies using a bottom-up budget