ACEO announces that sales went up significantly last year,and themarketing director is happy because this means her budget will also go up.This indicates that the firm is using the ________ to set the advertising budget.

Question

ACEO announces that sales went up significantly last year,and themarketing director is happy because this means her budget will also go up.This indicates that the firm is using the  ________  to set the advertising budget.

Quizplus · Accepted Answer

The fact that the marketing director is happy because the sales increase means her budget will also go up suggests that the firm is using the percentage-of-sales approach. This approach sets the advertising budget as a fixed percentage of the previous year's sales or the projected sales for the upcoming year.

ACEO Announces That Sales Went Up Significantly Last Year,and Themarketing