Problem: Imagine you are the financial manager of a corporation responsible for approving next year's annual operating budget. The Marketing, R&D (Research and Development) and G&A (General & Administrative) departments all submitted expense budgets with annual growth of less than 10%. However, the VP of Sales submitted an expense budget that is 35% higher than last year, with the explanation that the higher expenses are necessary to continue the company's revenue growth. Though it is true that the Sales organization has been consistently improving its revenue growth for the last few quarters, is this enough of a reason to approve the sales budget?
List at least 3 assumptions that you used to make your decision.