The _____ method of budgeting is being employed when expenditure is allocated by an analysis of expenditure in areas such as production and operations, and the amount left over is considered to be the advertising budget.
A)arbitrary allocation
B)percentage of sales
C)affordable
D)return on investment
E)competitive parity

Question

Quizplus · Accepted Answer

The affordable method of budgeting is being employed here, as the expenditure on advertising is being determined based on what the company can afford after analyzing expenditure in other areas such as production and operations. The other methods listed (arbitrary allocation, percentage of sales, return on investment, and competitive parity) involve different approaches to budgeting and do not match the description given in the question.

The _____ Method of Budgeting Is Being Employed When Expenditure