Too high a promotional budget during periods of high sales performance and too low a promotional budget during periods of low sales performance are characteristic of what budgeting method?

Question

Quizplus · Accepted Answer

This is characteristic of the Percentage-of-sales budgeting method, where the promotional budget is set as a fixed percentage of sales. This approach can lead to a higher promotional budget when sales are high and a lower budget when sales are low, directly linking the budget to sales performance.

Too High a Promotional Budget During Periods of High Sales