The major advantage of the ________method is that the budget is derived by the objectives to be attained.
A) percentage of sales
B) competitive parity
C) objective and task
D) ROI

Question

Quizplus · Accepted Answer

The objective and task method is the best choice here as it allows a company to allocate budget based on specific objectives and the tasks needed to achieve them. This method is considered to be more effective than others as it ensures that the budget is directly tied to the desired outcomes. The percentage of sales method simply allocates a percentage of previous sales to marketing, while the competitive parity method matches the marketing spend of competitors. The ROI method focuses on the return on investment of marketing activities, rather than setting a specific budget.

The Major Advantage of the ________Method Is That the Budget