Budgeting for Marketing Expenses by Computing a Percentage of Forecasted

Multiple Choice

Budgeting for marketing expenses by computing a percentage of forecasted sales:

A) is especially suitable for new products.
B) always results in increased expenditure levels from year to year.
C) is very complicated-and thus this method is not used very often.
D) may lead to a drop in marketing expenses at a time when the firm wants to maintain or expand sales.
E) tends to result in large changes in marketing expenses from year to year.