Auckland Financial Services is determined to employ its best estimate of the relationship between dollars spent and promotion results. It is most likely to use:
A) affordable budgeting.
B) competitive- parity budgeting.
C) objective- and- task budgeting.
D) percentage- of- sales budgeting.
E) none of the above

Question

Quizplus · Accepted Answer

Objective-and-task budgeting is the most suitable method for Auckland Financial Services as it focuses on determining the specific promotion tasks required to achieve the stated objective and then estimating the costs associated with those tasks. This method requires a thorough understanding of the relationship between dollars spent and promotion results to accurately estimate the costs required to achieve the objectives. Affordable budgeting, competitive-parity budgeting, and percentage-of-sales budgeting do not involve in-depth analysis of the relationship between dollars spent on promotion and the resulting outcomes, and therefore may not generate accurate estimates for Auckland Financial Services.

Auckland Financial Services Is Determined to Employ Its Best Estimate