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:

Collective Unconscious

A concept introduced by Carl Jung, referring to the part of the unconscious mind that is shared among beings of the same species containing archetypes and universal symbols.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind that is derived from ancestral memory and experience, common to all humankind.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts like archetypes, the collective unconscious, and individuation.