The________ Method of Budgeting Is Being Employed When Expenditures Are

question 66

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) ROI
• C) competitive parity
• D) percentage of sales

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Definitions:

Social Psychology

The scientific study of how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Cognitive Misers

A term that conveys the human tendency to avoid expending effort and cognitive resources when thinking and to prefer seizing on quick and easy answers to questions.

Mental Effort

The amount of cognitive resources required to perform a task or understand a concept.

Introspective

A reflective process where an individual examines their own thoughts, feelings, and motives.