The Percentage of Sales Method of Budgeting Is Based on

question 79

Multiple Choice

The percentage of sales method of budgeting is based on

• A)the previous year's sales revenue
• B)next year's projected sales revenue
• C)an average of the previous year's sales revenue and next year's project revenue
• D)the previous year's sales revenue or next year's projected sales revenue

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Definitions:

Return on Investment

A financial metric that calculates the profitability ratio from an investment, comparing the magnitude and timing of gains received to the cost of investment.

Sales Revenues

The total revenue a company earns from selling goods or services prior to deducting any costs.

Implementation Section

A portion of a plan or report that outlines the steps, timelines, and resources necessary to execute the planned activities or strategies.

Marketing Activities

The wide range of actions companies undertake to promote and sell their products or services to consumers.