Basing a communications budget on sales from the previous year or anticipated sales for the next year is the ________ budgeting method.
A) percentage of sales
B) meet the competition
C) what we can afford
D) payout planning

Question

Quizplus · Accepted Answer

Basing a communications budget on sales from the previous year or anticipated sales for the next year is the percentage of sales budgeting method. This approach is commonly used, as it is a simple and effective way to allocate resources based on the level of sales. The budget will typically be a percentage of the total sales revenue, and this percentage can vary depending on the industry, company, and specific marketing objectives.

Basing a Communications Budget on Sales from the Previous Year