On October 1, 2016, the manager of a company's Southeast region received the annual e-mail from the budget office. It was time to prepare the 2017 budget. Included in the e-mail were instructions that the manager should estimate the revenues and expenses his region would report for 2017. Anything greater than a 5% deviation from last year's budget would need to be explained, though there was no indication that the budgeted numbers wouldn't be accepted.

1) Explain whether the company's budget process in top-down or bottom-up?

2) List two advantages and two disadvantages of using the approach that you selected.