Toward the end of the fiscal year, the owner of a small company came back from lunch concerned because he had learned that a business targeting the same customers as his was planning on spending $150,000 on advertising. As soon as he arrived at the office, he called his financial manager and said, "I want to budget $150,000 for next year's advertising." Which method of budgeting did the owner want to use?

Question

Quizplus · Accepted Answer

The owner wanted to use the competitive method of budgeting, which involves setting a budget based on the spending of competitors.

Toward the End of the Fiscal Year, the Owner of a Small