Gabrielle is the chief marketing officer of Boyd Pharmaceuticals. She is meeting with Trent, the chief financial officer to decide on the company's marketing communications budget. After extensive discussions, they decide that the size of the budget will be calculated as a fraction of the overall turnover. What method did Gabrielle and Trent use to arrive at the marketing communications budget?

Question

Quizplus · Accepted Answer

Gabrielle and Trent used the percentage-of-sales method to arrive at the marketing communications budget by calculating the budget as a fraction of the overall turnover. This method involves allocating a fixed percentage of previous or projected sales revenue to the marketing budget.

Gabrielle Is the Chief Marketing Officer of Boyd Pharmaceuticals