Using the ________ for budgeting,the budget is determined based on a comparison of the total brand sales and the total marcom budget during the previous years.
A) percentage-of-sales method
B) objective-task method
C) historical method
D) competitive method
E) all you can afford method

Question

Quizplus · Accepted Answer

The percentage-of-sales method, also known as the sales-driven budgeting method, is commonly used by companies to allocate their marketing budget. With this method, the budget is determined by calculating a fixed percentage of the total sales revenue. This traditional approach considers the percentage of the previous year's total brand sales revenue as the base and sets aside a fixed percentage of that as the marketing budget for the current year. Therefore, the best choice in this scenario would be the percentage-of-sales method.

Using the ________ for Budgeting,the Budget Is Determined Based on a Comparison