The _____ method of budgeting is being employed when expenditures are allocated according information about industry averages for advertising.The budget is set to maintain a level consistent with industry spending.
A)arbitrary allocation
B)percentage of sales
C)objective and task
D)return on investment
E)competitive parity

Question

Quizplus · Accepted Answer

This method is known as competitive parity, where the budget is set based on industry averages to maintain a level consistent with the competition. This approach ensures that firms compete on a level playing field in terms of advertising expenditures.

The _____ Method of Budgeting Is Being Employed When Expenditures