In which of the following budgeting approaches can the previous year's sales most strongly influence the current year's advertising budget?
A) all-you-can-afford
B) percentage of sales
C) competitive parity
D) zero-base budgeting
E) none of the above

Question

Quizplus · Accepted Answer

The percentage of sales approach uses a set percentage of the previous year's sales to determine the advertising budget for the current year. Therefore, the previous year's sales have a strong influence on the current year's advertising budget in this approach.

In Which of the Following Budgeting Approaches Can the Previous