Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand and financially safe?
A) Objective and task
B) Competitive parity
C) Percentage of sales
D) Marginal analysis

Question

Quizplus · Accepted Answer

The percentage of sales budgeting procedure is a simple and safe method that allows a firm to anticipate sales and determine a budget based on a percentage of projected sales. This method is easy to understand and provides a financially safe approach as it ensures that the budget is directly tied to anticipated revenue.

Which of the Following Budgeting Procedures Would Be Used If