Which of the Following Is the Most Logical Budget-Setting Method

question 47

Multiple Choice

Which of the following is the most logical budget-setting method?

• A) percentage-of-sales method
• B) affordable method
• C) competitive-parity method
• D) objective-and-task method
• E) push method

---

Definitions:

Supply Equation

A mathematical representation showing the relationship between the quantity of goods suppliers are willing to produce and various influencing factors like price and production costs.

Per-Unit Tax

A tax imposed on a product based on a fixed amount for each unit sold, affecting the supply curve by increasing the cost of production.

Units Sold

The number of individual items or products that have been sold over a specific period.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to price or other factors.