The _____ method of budgeting is being employed when expenditures are allocated based on the industry averages of advertising expenditures. The budget is set to maintain a level consistent with industry spending.
A)arbitrary allocation
B)percentage-of-sales
C)objective and task
D)return on investment
E)competitive parity

Question

Quizplus · Accepted Answer

The competitive parity method of budgeting is being employed when expenditures are allocated based on the industry averages of advertising expenditures. The budget is set to maintain a level consistent with industry spending. This method is also known as matching competitors' spending or benchmarking.

The _____ Method of Budgeting Is Being Employed When Expenditures