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) arbitrary allocation
B) percentage of sales
C) objective and task
D) return on investment

Question

Quizplus · Accepted Answer

The described method follows the objective and task approach to budget setting, where communication objectives are defined and specific strategies and tasks are determined to achieve them, and the costs associated with these strategies and tasks are estimated. The other methods listed (arbitrary allocation, percentage of sales, return on investment) do not involve such a detailed and strategic process of budget setting.

The _____ Method of Budget Setting Consists of Three Steps