Final answer:
The statement in question is false. Bottom-up budgeting involves lower-level managers preparing the budgets, which are then reviewed and approved by senior management.
Step-by-step explanation:
The statement "Bottom-up budgets entrusts senior managers to prepare budgets and lower-level managers to execute them" is false. In fact, bottom-up budgeting is the opposite approach. With bottom-up budgeting, individual departments or units within an organization create their own budgets based on their specific needs and then submit them to senior management for approval. This method provides front-line employees with more input into the budgeting process, reflecting their understanding of their own operation's needs and constraints.
In bottom-up budgeting, lower-level managers are the ones who initiate and prepare the financial plans, which are then consolidated and potentially modified by higher management. Senior managers play more of a reviewing and coordinating role, ensuring that these individual departmental budgets align with organizational goals and financial constraints.