In communist states, the state planning system had five main characteristics. Firstly, with the exception of the field consumption and employment, practically all decisions were centralized at the top. Secondly, the system was hierarchical—the center formulated a plan that was sent down to the level below which would imitate the process and send the plan further down the pyramid. Thirdly, the plans were binding in nature, i.e. everyone had to follow and meet the goals set forth in it. Fourtly, the predominance of calculating in physical terms to ensure planned allocation of commodities were not incompatible with planned production. Finally, money played a passive role within the state sector since the planners focused on physical allocation.