Though the ________ method of setting an advertising budget is simple to use and helps management think about the relationships among promotion spending,selling price and profit per unit,it wrongly views sales as the cause of promotion rather than the result.
A)percentage-of-sales
B)affordable
C)competitive-parity
D)objective-and-task
E)regression

Question

Quizplus · Accepted Answer

The description clearly relates to the percentage-of-sales method, which is based on a predetermined percentage of past or anticipated sales. This method can be flawed, since it assumes that sales are the result of advertising rather than the other way around.

Though the ________ Method of Setting an Advertising Budget Is