The method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as?
Correct answer: A. percentage of sales method
- A. percentage of sales method
- B. affordable method
- C. competitive parity method
- D. objective and task method
Explanation
The percentage-of-sales method sets the advertising budget as a fixed percentage of current or forecast sales, sometimes expressed per unit sold. The affordable and competitive-parity methods use different bases for determining the budget.
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