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) ROI
C) competitive parity
D) percentage of sales

Question

Quizplus · Accepted Answer

The statement by the marketing department manager suggests an arbitrary allocation method, which is based on personal judgement or intuition rather than objective data or analysis.

The________ Method of Budgeting Is Being Employed When Expenditures Are