Asked by Bruce Eugine on May 30, 2024
Verified
The primary disadvantage of the percentage-of-sales budgeting method occurs when
A) there is not enough time to properly execute the method.
B) a firm's sales increase.
C) a firm's sales decline.
D) money is leftover when the budgeting period ends.
E) demand for the firm's products increase.
Percentage-Of-Sales
A method used to create a marketing or advertising budget based on a fixed percentage of a company's sales revenue.
Budgeting Method
A systematic approach to managing finances by allocating funds based on estimated expenses and revenues.
Sales Decline
A stage in the product life cycle where sales and profits begin to decrease due to market saturation, competition, or changes in consumer preferences.
- Gain insight into the financial strategies and budgeting techniques applicable to marketing promotions.
Verified Answer
Learning Objectives
- Gain insight into the financial strategies and budgeting techniques applicable to marketing promotions.
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