Chris Stemen, the owner of an independent gift store, is developing an advertising budget. Chris has totaled his company's revenues and deducted operating expenses and capital outlays. He intends to use a percentage of the remaining funds for advertising. Which budget setting method is Chris using?
A)affordable method
B)integrated method
C)percentage-of-sales method
D)competitive-parity method
E)objective-and-task method

Question

Quizplus · Accepted Answer

Chris is using the affordable method, which involves setting the advertising budget based on what he believes the company can afford after covering all other expenses.

Chris Stemen, the Owner of an Independent Gift Store, Is