We Know That the _____ Method of Budgeting Is Being

Multiple Choice

We know that the _____ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where."

A) arbitrary allocation
B) percentage of sales
C) contribution margin
D) return on investment
E) competitive parity