The _____ method of budgeting uses advertising/sales ratio data.
A)objective and task
B)affordable
C)percent of sales
D)ROI
E)arbitrary allocation

Question

Quizplus · Accepted Answer

The percent of sales method of budgeting uses the company's past advertising/sales ratio as a guide to setting the advertising budget for the upcoming period. This method is based on the assumption that the amount spent on advertising will be proportional to the level of sales achieved. Therefore, this method is suitable when the company wants to maintain a certain level of advertising investment in relation to sales.

The _____ Method of Budgeting Uses Advertising/sales Ratio Data