Basing a communications budget on sales from the previous year or anticipated sales for the next year is which method?
A) percentage of sales
B) meet the competition
C) what we can afford
D) payout planning

Question

Quizplus · Accepted Answer

Basing the communications budget on sales from the previous year or anticipated sales for the next year is known as the percentage of sales method. It is a common and practical approach to determine the communication budget. It helps in setting a realistic budget that is proportional to the company's sales, ensuring that the company does not overspend on advertising and communications.

Basing a Communications Budget on Sales from the Previous Year