In the arbitrary allocation approach to budgeting, systematic thinking occurs and objectives are budgeted for.

Question

Quizplus · Accepted Answer

In the arbitrary allocation approach, budgets are often based on past spending habits or randomly assigned without much strategic thinking or consideration of objectives. Systematic thinking and objective-based budgeting are more commonly seen in the performance-based or program-based budgeting approaches.

In the Arbitrary Allocation Approach to Budgeting, Systematic Thinking Occurs