Which of the Following Statements About the Percentage-Of-Sales Method of Budgeting

question 103

Multiple Choice

Which of the following statements about the percentage-of-sales method of budgeting is true?

• A)The percentage-of-sales method is the least used bottom-up method for budgeting.
• B)This method implies that sales cause promotional outlays.
• C)The percentage-of-sales method is the only top-down budgeting method used to determine promotional budgets.
• D)This method implies that sales are an outcome of production.
• E)Firms using this method are inclined to spend more on promotion when revenue decreases.

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Definitions:

Senses Words

Words that evoke sensory experiences, relating to sight, sound, touch, taste, or smell, enhancing descriptive writing.

Paralanguage

Paralanguage refers to the non-verbal elements of communication used to modify meaning and convey emotion, such as tone of voice, loudness, and pitch.

Nonverbal Communication

The process of conveying information between individuals through means other than spoken words, including body language, facial expressions, and gestures.

Back-Channeling

Back-Channeling is a conversational technique involving non-verbal cues like nodding or verbal affirmations like "uh-huh" to indicate active listening and encourage the speaker to continue.