Promotional funds are determined according to past experience in which of the following methods?
A) Spending as much as the competition
B) What can be spared
C) Percentage of sales
D) Forecasted industry standard

Question

Quizplus · Accepted Answer

Promotional funds are commonly determined using the percentage of sales method, which involves allocating a percentage of expected sales revenue towards marketing and advertising efforts. This method takes into account past experience and anticipated performance, and ensures that promotional spending is proportional to the company's overall financial situation. Spending as much as the competition or based on what can be spared may not be effective or feasible strategies, and forecasted industry standards may not accurately reflect a company's unique circumstances.

Promotional Funds Are Determined According to Past Experience in Which