Refer to Scenario 16

Refer to Scenario 16.2. If State Farm were to decide that its previous method of appropriating the advertising budget was ineffective, it could decide to allocate 2 percent of its total annual sales to advertising. However, one problem with this method is that

A) it makes the bookkeeping too difficult.
B) it is tied too closely to sales forecasts.
C) a sales decline leads to an increase in the advertising appropriation.
D) a drop in sales would cause a drop in the advertising budget.
E) competitors may have different advertising objectives.