According to the text, the most sensible method for budgeting for promotion expenses is to:
A) allocate some fixed percentage of net sales.
B) allocate all available funds.
C) allocate money for direct-response promotion first and then use money that's left for integrated marketing communications.
D) match expenditures with competitors.
E) use the "task method."

Question

Quizplus · Accepted Answer

The text mentions that the "task method" is the most sensible method for budgeting for promotion expenses. This method involves setting specific objectives for promotional activities and allocating funds accordingly to achieve those objectives. This method is more strategic and goal-oriented than simply allocating a fixed percentage of net sales or matching competitors' expenditures. It also allows for flexibility in adjusting the budget based on the desired outcomes of the promotional activities.

According to the Text, the Most Sensible Method for Budgeting