Question

After reading the daily newspaper, the restaurant owner said, "The owner of Fellini's House of Noodles ran a quarter-page ad in today's paper. We'll just have to run our own ad day after tomorrow." What budgeting technique is the restaurant owner most likely using?

Answer 1

Answer:

competitive parity budgeting

Explanation:

In simple words, competitive parity budgeting refers to the method of budgeting under which an individual or an entity prepares or chronologically changes its budgets by comparing it with the other entity, which is usually their biggest competitor.

Under such a method, the subject entity could change the level of budget or might change the system of budgeting altogether. Such kinds of budgeting techniques are used in industries such as automotive or beverages etc.