Imagine you have overheard the owner of a medium-sized manufacturing company saying,"We had a good year,and I think next year will be even better.I'm going to raise this year's promotion budget 4.5 percent based on the increase of last year's gross sales.That will let me do more advertising than the 3.5 percent I budgeted last year." From this information,the manufacturer is using __________ budgeting.

Question

Quizplus · Accepted Answer

The manufacturer is using percentage of sales budgeting by basing the promotion budget on the increase of last year's gross sales.

Imagine You Have Overheard the Owner of a Medium-Sized Manufacturing