Which of the following is the most logical budget-setting method?
A) percentage-of-sales method
B) affordable method
C) competitive-parity method
D) objective-and-task method
E) push method

Question

Quizplus · Accepted Answer

The objective-and-task method is the most logical budget-setting method as it involves setting and prioritizing objectives, identifying necessary tasks to achieve those objectives, determining the costs associated with those tasks and creating a budget accordingly. This method is considered the most effective as it ensures that budgeting decisions are based on specific business objectives rather than being influenced by external factors such as competitor spending or current sales figures.

Which of the Following Is the Most Logical Budget-Setting Method