A Company Decides on Its Promotion Budget by Using Four

question 101

Multiple Choice

A company decides on its promotion budget by using four common methods to set the total budget for advertising.What is NOT one of these methods?

• A)the affordable method
• B)the percentage-of-sales method
• C)the integrated budgeting method
• D)the competitive-parity method
• E)the objective-and-task method

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Price Elasticity Coefficients

Measures of how much the quantity demanded of a good responds to a change in the price of that good, expressed numerically.

Total Revenue

The overall income generated by a firm or entity from its sales or services before any costs or expenses are subtracted.

Price-elasticity Coefficient

A numerical measurement of the responsiveness of the quantity demanded or supplied of a product to a change in its price.