The advertising budget procedure used most frequently is the _____ method.
A) percentage-of-sales
B) arbitrary allocation
C) marginal cost
D) competitive parity
E) objective-and-task

Question

Quizplus · Accepted Answer

The objective-and-task method is considered the most rational budgeting method as it involves setting specific objectives, determining tasks required to achieve the objectives, and estimating the costs associated with the tasks. This method ensures that advertising funds will be allocated according to specific goals and can be adjusted based on the success of the advertising campaigns. The other methods, like percentage-of-sales and competitive parity, may not take into account the specific goals and tasks of the company and may not result in an optimal allocation of funds.

The Advertising Budget Procedure Used Most Frequently Is the _____