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ACC 2020 Ashley Rosser
Week 7 Cultural Event June 22,2014

In an article published on the Galileo website titled Advertising and promotion budgeting during volatile economic conditions: Factors influencing the level of decentralization in budgeting and its relations to budget size and allocation, written by Yunjae Cheong, Kihan Kim, and Hyuksoo Kim, the authors examine the extent to which various company, brand and organizational factors are related to the level of decentralization in the budgeting for advertising and promotion. The research from the article is based off of the five most common budgeting categories listed as Judgment, Competitive, Sales, Measurement, Objective and Task. All of these categories are explained in the article by either the bottom-up or the top-down process or a mixture of both.
The authors break down the article further into three factors influencing the level of decentralization in budgeting. The first factor is Company and it is broken down by company size (larger companies use more decentralized budgeted methods than smaller companies) and profitability (professional companies will use more decentralized budgeted methods than the companies experiencing losses). The second factor is Brand and is broken down into brand type (individual companies versus corporate/family brands using more decentralized budgeting), brand equity (higher brands versus lower quality brands), and brand price (higher price products versus lower price products). The final factor is the Organizational factor and is split into two departments. The first is marketing (the stronger the influence of the marketing department on budgeting decisions, the more decentralized the budgeting methods will be). The second factor is the finance department (the stronger the influence of the finance department on budgeting decisions, the less decentralized the

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