The Best Approach to Budgeting Is Objective and Task Budgeting

question 66

Multiple Choice

The best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and

• A) asks the ad agency for an estimate.
• B) asks the media to propose a program.
• C) determines the promotion cost of performing these tasks.
• D) determines what spending level top management will allow for the proposed program.
• E) surveys customers to determine what spending levels they think are appropriate.

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Definitions:

Organizational Design

The process of structuring an organization’s roles, responsibilities, and systems to effectively manage and utilize resources to achieve business objectives.

Unique Problems

Distinctive or specific issues that do not commonly occur and require tailored solutions.

Organizational Design

The method of shaping an organization's structure and roles to improve efficiency and achieve objectives.

Reporting Relationships

The hierarchical structure within an organization that defines who reports to whom.