The procedure of allocating a fixed amount of funds for capital spending to each business unit is called:
A) marginal spending.
B) capital preservation.
C) soft rationing.
D) hard rationing.
E) marginal rationing.

Question

Quizplus · Accepted Answer

Soft rationing involves allocating a fixed amount of funds for capital spending to each business unit within an organization, rather than based on the specific needs or profitability of each project.

The Procedure of Allocating a Fixed Amount of Funds for Capital