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 sales.That will let me do more advertising than the 3.5 percent I budgeted last year." From this information, you know the small manufacturer used __________ budgeting.

Question

Quizplus · Accepted Answer

The statement indicates that the owner of the manufacturing company is basing their promotion budget on a percentage of last year's gross sales. This is characteristic of percentage of sales budgeting, where the budget is calculated as a percentage of past or expected sales.

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