_______________ is the optimal budgeting method.
A) Per unit
B) Objective-and-task
C) Percent-of-sales
D) Comparative-parity
E) All-you-can-afford

Question

Quizplus · Accepted Answer

Objective-and-task budgeting is considered the most effective method as it involves identifying specific objectives, determining the tasks required to achieve those objectives, and estimating the costs associated with each task. This method ensures that the budget is aligned with the overall business objectives and can help in better tracking and planning of expenses. On the other hand, per unit, percent-of-sales, and comparative-parity methods may not consider specific business objectives and can lead to overspending or underspending in certain areas. The all-you-can-afford method is also not recommended as it does not consider the actual costs and can lead to a lack of resources in critical areas.

_______________ Is the Optimal Budgeting Method