Imagine you have overheard the owner of a medium-sized manufacturing company saying, "We had a good year, and I think next year will be even better. I'm going to raise this year's promotion budget to 4.5 percent of last year's gross dollar sales. That will let me do more advertising than the 3.5 percent I budgeted last year." From this information, the manufacturer is using __________ budgeting.

Question

Quizplus · Accepted Answer

The manufacturer is using the percentage of sales budgeting method by allocating a percentage of last year's gross dollar sales to the promotion budget.

Imagine You Have Overheard the Owner of a Medium-Sized Manufacturing