Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand, easy to implement, financially safe, and keeps the spending within reasonable limits?
A)competitive parity
B)marginal analysis
C)percentage of sales
D)objective and task
E)arbitrary

Question

Quizplus · Accepted Answer

Percentage of sales budgeting is a simple and easy-to-implement method that is financially safe and helps keep spending within reasonable limits. This method involves allocating a fixed percentage of sales, often based on historical data, for various budget categories. It ensures that costs do not exceed revenue and helps maintain a sense of financial stability for the firm.

Which of the Following Budgeting Procedures Would Be Used If