The Criticism That the Percentage-Of-Sales Budgeting Technique Is Not Logical

question 27

Multiple Choice

The criticism that the percentage-of-sales budgeting technique is not logical is based on the idea that _____.

• A) sales volume cannot be estimated accurately 
• B) it results in excessive amounts of funding being invested in advertising 
• C) it confuses objectives with goals 
• D) it reverses the true functional relationship between advertising and sales 
• E) advertising effectiveness cannot be measured

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Definitions:

Genetic Material

Molecules within cells that carry genetic information, primarily DNA or, in some viruses, RNA.

Future Generations

The forthcoming individuals or groups of a species that will exist in the future.

Fitness

Degree of adaptation to an environment, as measured by the individual’s relative genetic contribution to future generations.

Armored Glyptodonts

Prehistoric mammals resembling large armadillos with bony plates covering their bodies, now extinct.