Anita Is Working on Determining the Amount She Should Request

question 8

Multiple Choice

Anita is working on determining the amount she should request for next year's advertising budget.She is having difficulty coming up with a reasonable figure.One of Anita's colleagues mentions that advertising budgets are typically determined in one of three ways.Which is NOT one of the three typical methods?

• A) The advertising budget is a percentage of last year's sales.
• B) The company spends approximately what it believes is parity with competitors.
• C) The company spends 10% more on advertising than it did in the previous year.
• D) The company can use its strategic advertising goal (e.g., enhance awareness or positive attitudes) and work backward to calculate necessary expenditures.

---

Definitions:

Secondary Effects

The indirect impacts of an economic event, policy, or decision that may occur as a consequence of the primary effect, affecting different sectors or parts of the economy.

Economics

The social science that studies how individuals, governments, and societies make choices regarding the allocation of limited resources to satisfy unlimited wants.

Nobel Prize

Prestigious international awards granted annually in several categories including Physics, Chemistry, Medicine, Literature, and Peace, recognizing significant contributions to humanity.

Social Science

The field of scholarly or scientific study that examines society and human behaviors in various contexts.