When Budgeting for Sponsorship,a General Rule of Thumb Is to Be

question 18

Multiple Choice

When budgeting for sponsorship,a general rule of thumb is to be prepared to spend _____.

• A) 1-2 times the amount of the sponsorship on promoting the sponsorship
• B) 2-3 times the amount of the sponsorship on promoting the sponsorship
• C) 3-4 times the amount of the sponsorship on promoting the sponsorship
• D) 6 times the amount of the sponsorship on promoting the sponsorship
• E) No extra promotional dollars are required.

---

Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs.

Efficient Allocation

The optimal distribution of resources among different uses, ensuring that resources are utilized in a way that maximizes overall benefit or utility.

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, often leading to inefficiencies.

Underallocation

The insufficient provision of resources to areas where they can be most efficiently or effectively used, often leading to inefficiencies.