The _____ Method of Budgeting Is Being Employed When Expenditures

Multiple Choice

The _____ method of budgeting is being employed when expenditures are allocated after an experienced marketing department manager responds to a new employee's question,"How was the ad budget established in years past?" by saying,"The same way it's always been done.I just have an instinct for how much should be budgeted where."

A) arbitrary allocation
B) percentage of sales
C) ROI
D) competitive parity