In the _____ method of budget determination, advertising is considered an investment, similar to plant and equipment.
A)payout planning
B)objective and task
C)ROI budgeting
D)competitive parity
E)percentage-of-sales

Question

Quizplus · Accepted Answer

ROI (Return on Investment) budgeting considers advertising as an investment and determines the budget based on the expected returns. In this method, the advertising budget is determined by estimating the expected revenue from the advertising campaign and calculating the return on investment. It is different from other methods, such as percentage-of-sales or competitive parity, which base the budget on historical spending or industry benchmarks.

In the _____ Method of Budget Determination, Advertising Is Considered