Northern Companies has three separate divisions.Each year, the company determines the amount it can afford to spend in total for capital expenditures and then allocates one-third of that amount to each division.This allocation process is called:

Question

Quizplus · Accepted Answer

Soft rationing refers to the internal allocation of capital within a company, where the company limits the amount of capital allocated to each division or project, even though it has sufficient capital overall.

Northern Companies Has Three Separate Divisions