The Owner of a Nail Shop That Operates in a Local

question 132

Multiple Choice

The owner of a nail shop that operates in a local strip mall told her daughter, "Well, after budgeting for all of our expenses for next year, we still have about $7,500 remaining for emergencies. Let's budget 20 percent of that amount for advertising." What budgeting technique is the retailer most likely using?

• A) all-you-can-afford budgeting
• B) percentage of sales budgeting
• C) competitive parity budgeting
• D) objective and task budgeting
• E) linear forecast budgeting

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Definitions:

Patent Rights

This is the legal protection granted to an inventor or assignee offering exclusive rights to use and profit from an invention for a certain period.

Amortization

The process of gradually writing off the initial cost of an intangible asset over a period of time.

Legal Life

The duration for which a legal entity, patent, copyright, or other legal protection is valid or enforceable.

Depletion Expense

The allocation of the cost of natural resources over their productive life, typically used in industries like mining and forestry.