Using the Percentage-Of-Sales Method of Budgeting,the Ratio of Advertising Expenditures

question 22

Multiple Choice

Using the percentage-of-sales method of budgeting,the ratio of advertising expenditures to sales from the previous year is multiplied by ________ to determine the new advertising budget.

• A)the competition's sales
• B)share of media
• C)share of market
• D)last year's sales
• E)next year's sales forecast

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Definitions:

Tax Base

The aggregated economic value that is subject to taxation by a governing authority, which helps fund public expenditures.

Business Districts

Areas within a city where the main commercial activities are concentrated, including offices, retail shops, and service providers.

Prime Farmland

Land that is highly suitable for agriculture due to its fertility and ability to sustain long-term crop production.

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often characterized by low-density residential and commercial development.