The owner of a cosmetics start-up told his employees, "We had a good year, and next year looks to be even better. I'm going to raise this year's promotion budget by 4.5 percent compared to last year's. We had strong growth in sales of close to 10percent this year so I think we can do more advertising." This company is most likely using ________ budgeting.

Question

Quizplus · Accepted Answer

The company is using a percentage of sales budgeting method, as the owner is increasing the promotion budget by a percentage (4.5%) based on the sales growth (10%) from the previous year.

The Owner of a Cosmetics Start-Up Told His Employees, "We