Which top-down budgeting method is being employed when expenditure is allocated by assigning a budget based on gut feelings?
A)arbitrary allocation
B)percentage of sales
C)affordable method
D)payout planning
E)competitive parity

Question

Quizplus · Accepted Answer

Arbitrary allocation is the top-down budgeting method that refers to the allocation of expenditure based on subjective judgments and feelings rather than a systematic approach. It is an unreliable method that can result in misallocations and ineffective use of resources.

Which Top-Down Budgeting Method Is Being Employed When Expenditure Is