The ________method of budget setting consists of three steps: (1) defining the communication objectives, (2) determining the strategies and tasks to attain them, and
(3) estimating the costs associated with performance of these strategies and tasks.
A) percentage of sales
B) return on investment
C) arbitrary allocation
D) objective and task

Question

Quizplus · Accepted Answer

The method described in the question is known as the objective and task method of budget setting. It involves setting specific communication objectives, determining strategies and tasks to achieve them, and then estimating the costs associated with each task. This method is considered more precise and effective than other methods such as arbitrary allocation or percentage of sales, as it ties budgeting decisions directly to the intended results of the communication plan. Return on investment is a financial metric used to evaluate the profitability of an investment, and not a budget-setting method.

The ________Method of Budget Setting Consists of Three Steps: (1)