Basing a communications budget on sales from the previous year or anticipated sales for the next year is the which type of budgeting method?
A)Percentage of sales
B)Meet the competition
C)What we can afford
D)Payout planning

Question

Quizplus · Accepted Answer

Basing the communications budget on sales from the previous year or anticipated sales for the next year is known as Percentage of Sales budgeting method. This method is based on the assumption that the budget for communication activities should be a percentage of the company's sales revenue.

Basing a Communications Budget on Sales from the Previous Year