One of the Problems with the Percentage of Sales Budgeting

question 179

Multiple Choice

One of the problems with the percentage of sales budgeting method is:

• A)deciding on the percentage level.
• B)finding a benchmark figure to use.
• C)the budget tends to change in the opposite direction of what may be needed.
• D)the competition knows how much the company will spend on advertising.

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Definitions:

Direct Effects

Immediate outcomes or impacts of an action, intervention, or phenomenon without the mediation of other factors.

Reactivity

The tendency of a person or system to be affected by external stimuli or conditions.

Type A Personality

A characteristic of one's personality marked by intense competition, self-driven stress, and a perpetual feeling of haste.

Stress

A physical, mental, or emotional strain or tension resulting from adverse or demanding circumstances.