Toward the end of the fiscal year,the owner of a small company came back from lunch concerned because he had learned that a business targeted to the same customers as his was planning on spending $150 000 on promotion.As soon as he arrived at the office,he called his financial manager and said,"I want to budget $150 000 for next year's promotion." Which method of promotional budgeting did the owner want to use?

Question

Quizplus · Accepted Answer

The owner's decision to budget $150,000 for promotion, based on the amount a competitor is spending, aligns with the competitive-parity method. This method involves setting a budget to match competitors' spending to maintain parity in the market.

Toward the End of the Fiscal Year,the Owner of a Small