Which Top-Down Budgeting Method Is Being Employed When Expenditures Are

question 42

Multiple Choice

Which top-down budgeting method is being employed when expenditures are allocated by assigning a budget based on gut feelings?

• A) Percentage of sales
• B) Arbitrary allocation
• C) Affordable method
• D) Payout planning

---

Definitions:

Zero-inflation

A situation where the price level of goods and services remains constant over time, indicating an absence of inflation in the economy.

Phillips Curve

An economic concept that describes an inverse relationship between rates of unemployment and corresponding rates of inflation, suggesting that higher inflation is associated with lower unemployment and vice versa.

1970s

A decade marked by significant events including economic turmoil, the oil crisis, social movements, and the Cold War's continuing tension.

Price Expectations

The beliefs or forecasts that consumers and producers have regarding future prices, which can influence their economic decisions.