For a particular sports brand,the communications budget has always been 4% of sales.Sales declined by 6% over the last year.The percentage of sales method of budgeting is used based on last year's sales,so the communications budget for next year will be

Question

Quizplus · Accepted Answer

The communications budget for the next year will be reduced by 6%, which is the same as the percentage by which the sales declined. Since the percentage of sales method of budgeting is used based on last year's sales, the budget will be reduced according to the decline in sales. Therefore, option B is the correct answer.

For a Particular Sports Brand,the Communications Budget Has Always Been