Which of the following allocation methods makes use of a buildup approach to setting budgets?
A)Percentage-of-sales
B)Arbitrary allocation
C)Competitive parity
D)Objective and task
E)Affordable

Question

Quizplus · Accepted Answer

The objective and task method involves setting specific objectives for the advertising campaign and then determining the tasks needed to achieve those objectives. The cost of each task is then estimated, and the total cost is used to set the advertising budget. This is a buildup approach to setting budgets. The other methods listed (percentage-of-sales, arbitrary allocation, competitive parity, and affordable) do not involve this type of step-by-step approach.

Which of the Following Allocation Methods Makes Use of a Buildup