Identify the Correct Statement About the Percent of Sales Method

Identify the correct statement about the percent of sales method of determining advertising budget.

A) It is characterized by a set of complex calculations that lack simplicity.
B) It is based on the premise that advertising is needed to generate sales.
C) It attempts to determine retail prices by using production costs as a base.
D) It is most suitable for automobiles and appliances owing to its complicated framework.