Intuitively,a major fallacy of __________ budgeting is that by tying a promotion budget to sales,a company may reduce the amount it spends on promotion if sales declined the previous period when it actually needs to spend more.

Question

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This description matches the percentage of sales budgeting method, which ties the promotion budget to sales. If sales declined in the previous period, this method may lead to a reduction of the promotion budget, even though more spending may be needed to reverse the sales decline.

Intuitively,a Major Fallacy of __________ Budgeting Is That by Tying