The ________method of budgeting is being employed when expenditures are allocated according information gathered to determine industry averages for advertising. The budget is set to maintain a level consistent with industry spending.
A) return on investment
B) percentage of sales
C) competitive parity
D) objective and task

Question

Quizplus · Accepted Answer

Competitive parity method of budgeting involves setting the budget based on industry or competitor spending levels. This method ensures that the company stays competitive and does not fall behind in advertising and marketing expenditures.

The ________Method of Budgeting Is Being Employed When Expenditures Are