Budgeting for promotion expenditures by computing a percentage of past or expected sales
A) is the most common method of setting the promotion budget.
B) is a complex method of budgeting.
C) will increase promotional expenditures when business is poor.
D) is especially suitable for new products.
E) none of these alternatives is correct.

Question

Quizplus · Accepted Answer

The most common method of budgeting for promotion expenditures is to compute a percentage of either past sales or sales expected in the future.

Budgeting for Promotion Expenditures by Computing a Percentage of Past