A manager publishes budgets as amounts to the managers reporting to him. The following table shows the allocations made to each direct report (managers) and the total salaries of the employees in their chain.
Now, one of Manager 2’s employees with eligible salary of $ 100,000 is reassigned to Manager 3. What will be
the impact on Budget Percentage? (Choose the best answer.)
A.
No impact. The budget allocated to the employee will automatically be allocated to Manager 3. Budget
percentage will remain as 10.
B.
Allocated budget will not change. Budget percentage of Manager 2 will increase to 12.5% and Manager 3
will decrease to 8%.
C.
Allocated budget will not change. Budget percentage of Manager 3 will increase to 12.5% and Manager 2
will decrease to 8%.
D.
Budget allocated for the employee will be released back to the manager for reallocation. Budget percentage
will remain unchanged.