MasterFoods is an Australian producer of condiments, relishes and sauces, etc. It is preparing its promotional budget for next year. If its first step is to forecast next year's sales, then MasterFoods is using the_________ method.
A) market share
B) competitive parity
C) objective- and- task
D) percentage- of- sales
E) affordable

Question

Quizplus · Accepted Answer

The percentage-of-sales method involves forecasting next year's sales and setting the promotional budget as a fixed percentage of these forecasted sales. Since MasterFoods is preparing its promotional budget by first forecasting next year's sales, it indicates they are using the percentage-of-sales method.

MasterFoods Is an Australian Producer of Condiments, Relishes and Sauces