In setting this sales budgeting approach (__________), the amount of money spent is based on a calculation on past or anticipated sales.

Question

Quizplus · Accepted Answer

The percentage of sales approach involves setting the sales budget as a fixed percentage of past or anticipated sales. This approach is based on the assumption that the amount spent on advertising and promotion should be proportional to the level of sales expected from such spending. As such, it ensures that the budget is directly tied to revenue projections, which can provide a reasonable guideline for the amount of money that can be allocated to advertising and promotion.

In Setting This Sales Budgeting Approach (__________), the Amount of Money