When sales go down, many firms try to correct the problem by increasing promotion. However, the use of ___________budgeting would instead cause its user to decrease
Promotion budgets after a downturn in sales.

Question

Quizplus · Accepted Answer

Percentage of sales budgeting links the promotion budget to sales figures. Therefore, if sales decrease, the budget allocated for promotion would also decrease, following the logic of this budgeting method.

When Sales Go Down, Many Firms Try to Correct the Problem