What is a potential disadvantage of bottom-up budgeting?

A potential disadvantage of bottom-up budgeting is that it can be a time-consuming process. This method involves gathering input and information from various levels of staff within the organization, which can lead to lengthy discussions and negotiations as everyone tries to contribute their insights and needs. While this participative approach can foster engagement and ensure that budgets reflect a more realistic view of the organization's operations, the extensive collaboration needed can slow down decision-making and delay the overall budgeting process.

In contrast, the other options highlight advantages typically associated with bottom-up budgeting. Enhanced alignment with corporate objectives, increased motivation for staff, and improved local knowledge are all positive aspects derived from involving lower-level managers and staff in the budgeting process. This collaboration tends to create a budget that reflects both strategic goals and operational realities, fostering a sense of ownership and understanding among employees. However, the benefit of increased involvement does come at the expense of time and efficiency, making the process longer than top-down approaches.