Mood-lites are colored light bulbs that were developed according to research on how colors affect moods. In allocating funds for advertising the new light bulbs, the manufacturer decided to budget 5 percent of last year's sales for advertising expenditures. Which allocation method was the manufacturer using?

Question

Quizplus · Accepted Answer

The manufacturer used the percentage-of-sales allocation method, as they allocated 5 percent of last year's sales for advertising expenditures.

Mood-Lites Are Colored Light Bulbs That Were Developed According to Research