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The old method was unsatisfactory according to Mr. Reisman.
? According to old method, selling expenses were budgeted on a fixed or appropriation basis. Each October, the accounting department sent records of actual expenses for the preceding year and for the current year - to - date, to the branch managers and to other managers who in charge of selling departments.
? Looking into the preceding year’s report & by their judgment, these department heads drew up and submit estimates of the expenses for their departments for the succeeding year.
? Then the estimates made by the branch managers were sent to the sales manager, who was in charge of all branch sales...
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