Of the following budgeting methods, the one that would be most likely to be used by firms seeking to protect their market position without generating a promotion war is the method called:
A) competitive- parity.
B) affordable.
C) objective- and- task.
D) percentage- of- sales.
E) none of the above

Question

Quizplus · Accepted Answer

Competitive-parity budgeting method allows firms to allocate their promotional budget based on the budgets of their competitors. This ensures that the firm is not spending excessively on promotions and is not being outspent by competitors. This method helps the firm maintain its market position without triggering a promotion war.

Of the Following Budgeting Methods, the One That Would Be