Everything Tablets,a distributor of mobile computing tools,is formulating a budget for next year's promotional activities.The company decides to budget 7% of the current year's revenues.What budgeting method is Everything Tablets using?
A) spending as much as the level of sales
B) determining what level of sales it will take to do the job
C) allocating a percentage of sales
D) deciding what level of costs to accept

Question

Quizplus · Accepted Answer

Everything Tablets is using the method of allocating a percentage of sales, which involves setting aside a percentage of current year's revenue for the promotional activities in the next year. This method is widely used in budgeting as it helps companies to maintain consistency in their promotional spending year on year, based on their sales revenue.

Everything Tablets,a Distributor of Mobile Computing Tools,is Formulating a Budget