Which of the Following Observations Is True of the Percent-Of-Sales

Multiple Choice

Which of the following observations is true of the percent-of-sales approach of determining advertising spending?

A)  It is often used in conjunction with the research approach.
B)  It attempts to determine the retail price by using production costs as a base.
C)  The basic philosophy underlying this approach is that advertising is defensive.
D)  This approach is popular in retailing.