Which top-down budgeting method is being employed when expenditures are allocated by assigning a budget based on gut feelings?
A) Percentage of sales
B) Arbitrary allocation
C) Affordable method
D) Payout planning

Question

Quizplus · Accepted Answer

The arbitrary allocation method assigns a budget based on subjective and arbitrary factors, such as gut feelings or past experience, rather than objective criteria like sales or expenses.

Which Top-Down Budgeting Method Is Being Employed When Expenditures Are