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 4.5 percent based on last year's gross 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 percentage of sales budgeting, as they are raising the promotion budget based on last year's gross sales. This is a common approach in which a percentage of sales is allocated for the promotion budget, allowing for a more flexible and adaptable approach to budgeting.

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