Which budgeting method relies on a fixed percentage of forecasted sales?

The correct answer is the rule-of-thumb methods. This budgeting approach typically employs a simple formula where a business allocates a certain percentage of its projected sales for a given period for its marketing budget. It is grounded in historical performance and reasoning, making it accessible and easy to apply for many organizations, especially smaller ones with limited resources.

In contrast, the objective-and-task method involves determining specific objectives for the marketing campaign and budgeting according to the tasks required to achieve those objectives. Zero-based budgeting starts from a "zero base," meaning that no previous budget is assumed as a starting point and each new period requires justification for each expense. Incremental budgeting relies on the previous period’s budget and makes adjustments based on what’s necessary for the upcoming period. These methods are more complex than the rule-of-thumb approach, which focuses on a straightforward percentage of sales.