Which of the following observations is true of the percent-of-sales approach of determining advertising spending?

Question

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The percent-of-sales approach of determining advertising spending is popular in retailing. The per-unit approach attempts to determine the retail price by using production costs as a base. The basic philosophy underlying the competitive parity approach is that advertising is defensive. The task approach is often used in conjunction with the research approach.

Which of the Following Observations Is True of the Percent-Of-Sales