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Author Question: Which of the following is not a ratio-to-sales method of budgeting? a. percentage of anticipated ... (Read 86 times)

jake

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on: Jun 29, 2018
Which of the following is not a ratio-to-sales method of budgeting?
 a. percentage of anticipated sales c. percentage of past sales
  b. percentage of unit anticipated sales d. All of the above are valid ratio-to-sales methods.

Question 2

Which of the following is not a traditionally used method of allocating communications expenditures?
 a. ratio to sales c. return on sales
  b. competitive parity d. all you can afford


dyrone

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D
Ratio-to-sales methods calculate a budget based on percentage of anticipated sales, percentage of unit anticipated sales, percentage of past sales, and percentage of unit past sales.

Answer to Question 2

C
Many methods are traditionally used in allocating communications expenditures. Among the popular methods are ratio-to-sales methods, competitive-parity methods, quantitative methods, the return-on-investment (ROI) method, the objective-task method, the all-you-can-afford method, and the previous-budget method.


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