Imagine a small retailer saying, "Well, after budgeting for all of our expenses for next year, we still have about $7500 remaining for emergencies. How about if we budget 20 percent of that amount for advertising?" What budgeting technique is the small retailer using?

Question

Quizplus · Accepted Answer

The retailer is using the "all-you-can-afford" budgeting technique, which involves allocating funds to advertising based on what they believe they can afford after covering all other expenses. This approach does not necessarily consider the advertising's effectiveness or the competitive landscape.

Imagine a Small Retailer Saying, "Well, After Budgeting for All