The budgeting method is constraining because it relies on gross revenue is known as the ______________ method.
A) Per unit
B) Objective-and-task
C) Percent-of-sales
D) Comparative-parity
E) All-you-can-afford

Question

Quizplus · Accepted Answer

The budgeting method that relies on gross revenue being known is the percent-of-sales method. This method determines the budgeted amount for marketing based on a percentage of the anticipated sales revenue. While it provides a clear guideline for budgeting, it can also be constraining as it limits the budgeted amount to a percentage of sales.

The Budgeting Method Is Constraining Because It Relies on Gross