Which of the following budgeting procedures would be used if a firm wanted a method that is simple to understand and financially safe?
A) Competitive parity
B) Marginal analysis
C) Percentage of sales
D) Objective and task

Question

Quizplus · Accepted Answer

The percentage of sales method is a simple and safe budgeting procedure that relies on a predetermined percentage of the previous year's sales to determine the budget for the upcoming year. This method is easy to understand and provides a conservative estimate of future expenditures.

Which of the Following Budgeting Procedures Would Be Used If