Budgeting for Promotion Expenditures by Computing a Percentage of Past

Multiple Choice

Budgeting for promotion expenditures by computing a percentage of past or expected sales:

A) is the most common method of setting the promotion budget.
B) is a complex method of budgeting.
C) will increase promotional expenditures when business is poor.
D) is especially suitable for new products.
E) None of these alternatives is correct.