Which of the following statements is most likely true regarding the objective-and-task method of budget setting?
A) It forces management to spell out its assumptions about the relationship between the money spent and promotion results.
B) It is the simplest and least time consuming method to use.
C) It is the least logical budget-setting method.
D) It involves setting the promotion budget to match competitors' outlays.
E) It wrongly views sales as the cause of promotion rather than as the result.

Question

Quizplus · Accepted Answer

The objective-and-task method requires managers to identify specific promotion objectives and then determine the tasks required to achieve those objectives, including the costs associated with each task. As a result, this method forces managers to explicitly specify their assumptions about the relationship between the money spent on promotion and the expected outcomes, making it the most likely true statement.

Which of the Following Statements Is Most Likely True Regarding