major fallacy of __________ budgeting is that by tying a promotion budget to sales,a company may reduce the amount it spends on promotion when it actually needs to spend more.

Question

Quizplus · Accepted Answer

The fallacy described in the question is known as the "percentage of sales" fallacy, which is a major criticism of the percentage of sales method of budgeting. By tying a promotion budget to sales, a company may reduce the amount it spends on promotion when it actually needs to spend more, which can result in lower sales in the long run. This is why the percentage of sales method is often criticized for not taking into account the specific needs and objectives of a company.

Major Fallacy of __________ Budgeting Is That by Tying a Promotion