The percentage of sales method of setting the communications budget is preferred by managers because of the following reasons except
A)it is an easy method to use
B)it considers the impact of outside forces
C)no complex models or analysis needs to be conducted
D)tying the budget into sales is more objective than the affordability method

Question

Quizplus · Accepted Answer

The percentage of sales method does not consider the impact of outside forces such as competition, economy, or technological advancements. It assumes that sales will increase with communication spending, which may not always be the case. Therefore, option B is incorrect, and the remaining options are valid reasons why managers prefer this method.

The Percentage of Sales Method of Setting the Communications Budget