Which form of budgeting allocates a portion of total expenditures in the unit to research activities?
A) Rule-of-thumb budgeting
B) Percentage-of-sales budgeting
C) Departmental budgeting
D) Task budgeting
E) Competitive parity

Question

Quizplus · Accepted Answer

Departmental budgeting allocates a portion of the total expenditures to each department, including research activities, based on their specific needs and goals. Rule-of-thumb budgeting is a less precise method that relies on previous years' spending patterns, while percentage-of-sales budgeting allocates a percentage of sales revenue to budgets. Task budgeting focuses on specific projects rather than allocating funds to departments. Competitive parity involves setting budgets based on competitors' spending.

Which Form of Budgeting Allocates a Portion of Total Expenditures