What is a disadvantage of using the Melinda Salzer @Berkeley College

Question 91 / 200: What is a disadvantage of using the percentage-of-sales method for determining an advertising budget?

A There are no disadvantages. It is an excellent method of budgeting.

B The competition is likely using this approach.

C It is calculated in the same manner as the Residual approach.

D It assumes that sales are directly related to advertising.

E All of the above

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Prof.Melinda SalzerProfessor

Berkeley College

USA

Attribution: Charles Jumper and Melinda Salzer. Advertising & Promotion (The Saylor Academy 2014), http://www.saylor.org/courses/bus306/

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