The best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and

Question

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Objective and task budgeting involves determining the cost of performing specific tasks in order to achieve promotion objectives. Therefore, determining the promotion cost of performing these tasks is the most appropriate option for this type of budgeting approach. Asking the ad agency for an estimate or asking the media to propose a program would be more appropriate for a different budgeting approach. Determining what spending level top management will allow or surveying customers for spending levels are not directly related to this specific budgeting approach.

The Best Approach to Budgeting Is Objective and Task Budgeting