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:

Jet Lag

A transient condition characterized by exhaustion, sleeplessness, and various other signs, resulting from flying across different time zones.

Time Zones

Regions of the Earth that have the same standard time, determined by the longitudinal divisions of the globe.

Los Angeles

A major city in California, known for its entertainment industry, particularly Hollywood.

Falling Asleep

The transition from wakefulness to sleep, characterized by a decrease in bodily movement and responsiveness to external stimuli.