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Many Companies Set Promotion Expenditures at a Specified Percentage of Sales

Question 105

Multiple Choice

Many companies set promotion expenditures at a specified percentage of sales (either current or anticipated) or of the sales price. This method of budgeting is called


A) competitive parity method.
B) percentage-of-sales method.
C) affordable method.
D) objective-and-task method.
E) budgeted method.

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