Many Companies Set Promotion Expenditures at a Specified Percentage of Sales

question 105

Multiple Choice

Many companies set promotion expenditures at a specified percentage of sales (either current or anticipated) or of the sales price. This method of budgeting is called

• A) competitive parity method.
• B) percentage-of-sales method.
• C) affordable method.
• D) objective-and-task method.
• E) budgeted method.

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Definitions:

Green-circle Rate

A situation in wage-setting where an employee's pay is below the minimum of the range set for their job class, often due to an anomaly or an exception in the salary structure.

Rank-and-file Adjustment

Changes or modifications made to the conditions or ranks of the general workforce, not the leadership or management.

Uniformed Services Employment and Reemployment Rights Act

A federal law that provides job protection and rights for military service members upon their return to civilian employment.

Fair Labor Standards Act

A United States law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week, among other protections for workers.