DECA Hospitality and Tourism Cluster Practice Exam

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Get ready for the DECA Hospitality and Tourism Cluster Exam. Use flashcards and multiple-choice questions with explanations and hints. Prepare with confidence!

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What is the process of estimating costs and allocating funds called in marketing?

Distributing
Budgeting
Promoting
Pricing

The correct answer is: Budgeting

The process of estimating costs and allocating funds in marketing is known as budgeting. Budgeting is a critical financial activity that involves detailing expected expenses and revenue over a specific period. In marketing, this means planning for advertising costs, promotional materials, salaries, and other expenditures related to marketing campaigns. By establishing a budget, a company can ensure that it has allocated sufficient resources to achieve its marketing objectives while also helping to track spending and measuring return on investment (ROI). This process is essential for making informed decisions about resource allocation and ensuring that marketing initiatives are financially viable and strategically aligned with the overall goals of the organization. Effective budgeting allows marketers to prioritize activities based on expected outcomes and financial constraints, leading to more efficient use of funds and a higher likelihood of success in reaching target audiences.