I think this is what you're getting at. I have created here a group of "Primary" entry cells, each of which refers to a list of valid entries over in Column B; then a set of "Secondary" entries that are directed, by means of an INDIRECT in the Data Validation window, to drop downs appropriate for Salary & Benefits, or Supplies, or "Etc"
This makes use of named ranges for the secondary entry validations.
So essentially it's a primary menu, followed by tailored secondary menus. It's also possible, with the new Dynamic Array functions, to make something like this, well, "dynamic," meaning you could be adding new options in a real-time basis. I'm assuming for now that this method would suffice.
If I misunderstood your request, perhaps you could come back with a more detailed description with more examples.