The method of budgeting for advertising that views sales as the cause of promotion rather than as the result is known as:
A) competitive- parity.
B) percentage- of- sales.
C) objective- and- task.
D) affordable.
E) none of the above

Question

Quizplus · Accepted Answer

The percentage-of-sales method of budgeting for advertising is based on the view that sales drive the budget for promotion. This approach sets the advertising budget as a fixed percentage of sales revenue, implying that sales cause the promotional efforts rather than resulting from them.

The Method of Budgeting for Advertising That Views Sales as the Cause