We know that the _____ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where."
A)arbitrary allocation
B)percentage of sales
C)contribution margin
D)return on investment
E)competitive parity

Question

Quizplus · Accepted Answer

The statement indicates that the marketing manager is using an arbitrary allocation method, which involves relying on intuition or subjective opinions to determine the budget, rather than using data or objective measures.

We Know That the _____ Method of Budgeting Is Being