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Which budgeting method ties the promotional budget to a specific percentage of sales?
  • a)
    Percent of profit method
  • b)
    Matching the competition method
  • c)
    Keep pace method
  • d)
    Percent of sales method
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which budgeting method ties the promotional budget to a specific perce...
The percent of sales method sets the promotional budget as a specific percentage of the company's sales. The higher the sales, the higher the budget allocated to promotion. However, this method may not consider the actual needs or goals of the promotional campaign and can lead to overspending during times of high sales and underspending during low sales.
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Which budgeting method ties the promotional budget to a specific percentage of sales?a)Percent of profit methodb)Matching the competition methodc)Keep pace methodd)Percent of sales methodCorrect answer is option 'D'. Can you explain this answer?
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