One method that can be used when creating an advertising budget is called the "percentage of sales". This is when
A) an industry average is used
B) the agency is paid by a commission on sales
C) a sliding scale is used: the higher the sales, the more dollars for the advertising budget
D) a fixed amount is allocated
E) a predetermined percentage amount of sales is allocated

Question

Quizplus · Accepted Answer

The "percentage of sales" method allocates a predetermined percentage of sales towards the advertising budget. This method ensures that the budget is directly linked to the company's revenue and helps to control spending during times of lower sales. It is a widely used and effective method for creating an advertising budget.

One Method That Can Be Used When Creating an Advertising