The _____ method of budgeting is being employed when expenditures are allocated by assigning a fixed amount of the unit product cost to promotion and multiplying this amount by the number of units sold.
A)arbitrary allocation
B)percentage of sales
C)objective and task
D)return on investment
E)competitive parity

Question

Quizplus · Accepted Answer

The percentage of sales method of budgeting involves allocating a fixed percentage of the sales revenue to the promotion budget. This method helps to ensure that promotion expenses are in alignment with sales objectives and are proportional to revenue. Therefore, the best choice for the given question is option B as it aligns with the method of allocating a fixed amount of unit product cost to promotion and multiplying it by the number of units sold.

The _____ Method of Budgeting Is Being Employed When Expenditures