Which statement is most likely true about the affordable method of setting an advertising budget?
A) It typically overlooks how promotion affects sales.
B) It always results in overspending on advertising.
C) It is especially ideal for long-range market planning.
D) It leads to an overly fixed annual promotion budget.
E) It is most often used by firms with large advertising budgets.

Question

Quizplus · Accepted Answer

The affordable method of setting an advertising budget is based on allocating funds for promotion after accounting for all other expenses, rather than considering the relationship between advertising and sales. Therefore, it is likely to overlook how promotion affects sales.

Which Statement Is Most Likely True About the Affordable Method