In Which Sales Budgeting Approach Is the Amount of Money

question 112

Multiple Choice

In which sales budgeting approach is the amount of money spent based on past or anticipated sales?

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

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded, leading to market stability.

Positive Externality

A benefit enjoyed by a third-party as a result of an economic transaction they are not directly involved in.

Equilibrium Quantity

The amount of products or services available that matches the amount sought after at the price where supply meets demand.

Socially Optimal

A condition in which resources are allocated in the most efficient way from the perspective of society as a whole.