Certified Chief Information Security Officer (CCISO) — Question 23

Where does bottom-up financial planning primarily gain information for creating budgets?

Answer options

• A. By adding all capital and operational costs from the prior budgetary cycle, and determining potential financial shortages
• B. By reviewing last year's program-level costs and adding a percentage of expected additional portfolio costs
• C. By adding the cost of all known individual tasks and projects that are planned for the next budgetary cycle
• D. By adding all planned operational expenses per quarter then summarizing them in a budget request

Correct answer: C

Explanation

The correct answer is C because bottom-up financial planning focuses on estimating the costs of individual tasks and projects to create a comprehensive budget. Options A and B emphasize previous budgets and percentages, which are not the primary source of information in bottom-up planning. Option D, while related to operational expenses, does not specifically address the individual task and project focus of bottom-up budgeting.