Which statement is most likely true about the affordable method of setting an advertising budget?
A) Spending on advertising is based on a competitor's advertising outlays.
B) Spending on advertising is based on a predetermined percentage of current or forecasted sales for the year.
C) Spending on advertising is calculated based on the financial objectives a company wishes to accomplish.
D) Spending on advertising is calculated after operating expenses and capital outlays are deducted from total revenues.
E) Spending on advertising is calculated as a percentage of the unit sales price.

Question

Quizplus · Accepted Answer

The affordable method involves setting the advertising budget based on what the company can afford after covering operating expenses and capital outlays.

Which Statement Is Most Likely True About the Affordable Method