Probably the most often used method to establish selling budgets is
A) objective and task method.
B) profitability projections.
C) cost-justification method.
D) zero-based budgeting.
E) percentage-of-sales method.

Question

Quizplus · Accepted Answer

The most often used method to establish selling budgets is the percentage-of-sales method, which calculates the budget based on a percentage of past or projected sales. This method is simple, easy to implement, and requires less time and effort than other budgeting methods. It is also flexible, allowing for changes in the budget as sales fluctuate. The other methods listed (objective and task method, profitability projections, cost-justification method, and zero-based budgeting) are less commonly used for establishing selling budgets.

Probably the Most Often Used Method to Establish Selling Budgets