Which method of determining a marketing budget relies primarily on the previous year's budget?

A) extrapolation
B) target costing
C) percentage of profits
D) bottom-up budgeting

Bottom-Up Budgeting

A budgeting method where the budget is created with input from lower-level employees, leading up to a total company budget.

Extrapolation

The process of estimating, beyond the original observation range, the value of a variable on the basis of its relationship with another variable.

Previous Year's Budget

The financial plan containing income and expenditure for the prior year, used as a reference or benchmark for current financial planning.