Departmental budgeting means that research budgets are determined by _____.
A) allocating the same amount to research that competing firms allocate
B) the contributions of various departments to fund department-specific projects
C) evaluating projects on a case-by-case basis
D) taking a fixed percentage of some criterion
E) allocating whatever is left after covering other required expenditures

Question

Quizplus · Accepted Answer

Departmental budgeting means that each department is given a specific budget to fulfill their department-specific projects. This budget is based on the contributions of the department towards fulfilling the overall strategic objectives of the company. Therefore, option B is the correct answer. The other options do not reflect the concept of departmental budgeting.

Departmental Budgeting Means That Research Budgets Are Determined by _____