Competitive Parity Budgeting Refers to

question 187

Multiple Choice

Competitive parity budgeting refers to

• A) matching a competitor's absolute level of spending or the proportion per point of market share.
• B) allocating funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold.
• C) allocating funds to a promotion only after all other budget items are covered.
• D) determining a firm's promotion objectives, outlining the tasks to accomplish these objectives, and determining the advertising cost of performing these tasks.
• E) allocating funds to a promotion based on expected profits generated from it.

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Definitions:

Cost Center

A division or department within an organization that does not directly generate profits but incurs costs, often evaluated for efficiency.

Decentralization

The distribution of functions, powers, people, or things away from a central location or authority, often to increase efficiency or responsiveness.

Quality Managers

Professionals responsible for monitoring and evaluating the various stages of the production process to ensure that the final product meets predetermined quality standards.

Decentralization

The distribution of decision-making power and responsibility to lower levels within an organization.