The major problem with the ____ method of determining promotional expenditures is the tendency to spend more when sales are increasing and less when they are declining.
A)percentage of sales
B)what it will take to do the job
C)sales plus
D)what can be spared

Question

Quizplus · Accepted Answer

The percentage of sales method ties promotional expenditures to sales, so as sales increase, promotional expenditures automatically increase as well. This can lead to overspending during times of high sales, and underspending during times of low sales. The other methods (B, C, and D) do not have this problem.

The Major Problem with the ____ Method of Determining Promotional