In which of the following approaches of determining advertising expenditure does the availability of current revenues set the upper limit of the advertising budget?

Question

Quizplus · Accepted Answer

In the all-you-can-afford approach, the availability of funds sets the upper limit for the advertising budget, as the company spends all that it can afford on advertising after accounting for other expenses. Therefore, this approach is the one where the availability of current revenues determines the advertising expenditure.

In Which of the Following Approaches of Determining Advertising Expenditure