How is spending on advertising calculated in the affordable method of setting an advertising budget?
A)based on the company's objectives set for accomplishment
B)based on an amount remaining after operating expenses and capital outlays are deducted from total revenues
C)based on a certain percentage of current or forecasted sales
D)based on a percentage of the unit sales price
E)based on matching a competitors advertising outlays

Question

Quizplus · Accepted Answer

The affordable method involves setting the advertising budget at a level that the company thinks it can afford, which is determined by subtracting operating expenses and capital outlays from total revenues.

How Is Spending on Advertising Calculated in the Affordable Method