Which of the Following Statements Is True with Regard to a Percent-Of-Sales

question 40

Multiple Choice

Which of the following statements is true with regard to a percent-of-sales marketing and sales budget?

• A)It works by implementing a harvest strategy that requires more than the normal percentage of sales to achieve share and sales objectives.
• B)An aggressive growth strategy in this budget slowly reduces marketing and sales expenses as a percentage of sales while market share is harvested over time.
• C)The cost of customer acquisition and retention is the primary determinant of the budget and resource allocation under this approach to budgeting.
• D)It focuses on previous experience,but it could vary from past experience depending on the nature of the strategic market plan.
• E)It specifies each marketing task and the amount needed to accomplish it,given a particular strategic market plan and the task-related marketing mix strategies.

---

Definitions:

Conduct Business

The manner in which a company operates within its chosen marketplace, including its strategies, practices, and procedures.

EOQ

Economic Order Quantity, a formula that determines the ideal order quantity that minimizes total inventory holding costs and ordering costs.

Fixed Ordering Costs

Fixed ordering costs are the expenses that do not change with the quantity of order and typically include things like delivery charges and order processing fees.

Inventory Value

The total cost or market value of all the goods and materials held by a company.