Often businesses assume that by tying budget to sales, a company may have the least amount to spend when it actually needs the greatest amount of promotion dollars. This is a major fallacy of which method?

Question

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This is a fallacy of the percentage of sales method, which ties the promotion budget to a percentage of the previous year's sales. This assumes that sales and promotional needs will remain constant from year to year, which may not be the case. The objective and task method is a better approach as it involves identifying specific objectives and then determining the costs needed to achieve them.

Often Businesses Assume That by Tying Budget to Sales, a Company