Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit?
A) adaptive-control method
B) objective-and-task method
C) competitive-parity method
D) affordable method
E) percentage-of-sales method

Question

Quizplus · Accepted Answer

The percentage-of-sales method ties the advertising budget to a certain percentage of past or anticipated sales, helping management to consider how promotion spending relates to selling price and profit per unit. This method inherently encourages reflection on the financial impact of advertising relative to sales revenue and profitability.

Which Method of Setting Advertising Budgets Best Helps Management Think