A major disadvantage of the percentage-of-sales method to budgeting is that firms who allocate a random dollar amount to the promotion mix guarantee virtually nothing except that the money will be spent.

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The percentage-of-sales method involves allocating a budget based on a fixed percentage of sales, not a random dollar amount. The disadvantage is that it ties the budget to sales performance, which may not align with actual promotional needs.

A Major Disadvantage of the Percentage-Of-Sales Method to Budgeting Is