Which top-down budgeting method is being employed when the budget is determined based on what is felt to be necessary?
A)arbitrary allocation
B)percentage of sales
C)affordable method
D)payout planning
E)competitive parity

Question

Quizplus · Accepted Answer

The arbitrary allocation method is when the budget is determined based on what is felt to be necessary, without any specific calculation or formula. This is a top-down method where higher-level managers make decisions about the budget without input from lower-level managers or employees. This method can be problematic, as it may not be based on actual needs or available resources.

Which Top-Down Budgeting Method Is Being Employed When the Budget