The _____ method of budgeting is being employed when expenditures are allocated by looking at the revenue generated from sales of the product during one year.The information gathered from this examination is used to determine the next year's dollar amounts.
A) arbitrary allocation
B) percentage of sales
C) payout planning
D) return on investment

Question

Quizplus · Accepted Answer

The percentage of sales method of budgeting involves allocating expenditures based on the revenue generated from sales of the product during a set time period, often one year. This information is then used to determine the dollar amounts for expenditures in the next year. The other options, arbitrary allocation, payout planning, and return on investment, do not involve this specific method of using sales revenue as the basis for allocating expenditures.

The _____ Method of Budgeting Is Being Employed When Expenditures