With Regard to Determining How Much to Spend on Advertising,which

Multiple Choice

With regard to determining how much to spend on advertising,which of the following observations is true of the percent-of-sales approach?

A) This approach views sales as a function of advertising rather than advertising as a function of sales.
B) This approach 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.