The percentage- of- sales method wrongly views sales as the cause of promotion rather than the result.

Question

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The percentage-of-sales method assumes that promotion expenses should be a fixed percentage of sales, which views sales as the cause of promotion. However, promotion expenses should be based on the specific goals and strategies of the promotion, not just a predetermined percentage of sales. Therefore, the percentage-of-sales method wrongly views sales as the cause of promotion rather than the result.

The Percentage- Of- Sales Method Wrongly Views Sales as the Cause