The _____ method of budgeting is being employed when expenditures are allocated after an experienced marketing department manager responds to a new employee's question,"How was the ad budget established in years past?" by saying,"The same way it's always been done.I just have an instinct for how much should be budgeted where."
A) arbitrary allocation
B) percentage of sales
C) ROI
D) competitive parity

Question

Quizplus · Accepted Answer

The response given by the marketing department manager indicates that the budgeting process is based on arbitrary allocation, which means that budget amounts are determined subjectively by those in charge rather than using any specific method or formula.

The _____ Method of Budgeting Is Being Employed When Expenditures