Which top-down budgeting method is being employed when expenditures are allocated by assigning a budget based on gut feelings?
A)arbitrary allocation
B)percentage of sales
C)affordable method
D)payout planning
E)competitive parity

Question

Quizplus · Accepted Answer

The arbitrary allocation method involves allocating funds based on subjective judgments or gut feelings. It is not based on any specific formula or data analysis, and is therefore not a precise or reliable method.

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