In this budgeting method, the company allocates a predetermined amount to advertising for each unit sold:
A) industry average
B) share of market
C) fixed sum per unit sold
D) task method
E) percentage of sales

Question

Quizplus · Accepted Answer

The budgeting method in which the company allocates a predetermined amount to advertising for each unit sold is known as the fixed sum per unit sold. This method helps companies to allocate a consistent amount of budget for advertising based on the number of units sold, which can simplify the budgeting process and ensure that advertising expenses do not exceed the revenue generated from sales.

In This Budgeting Method, the Company Allocates a Predetermined Amount