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

---

Definitions:

Contracts

Legally binding agreements between two or more parties that outline obligations and rights.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs, usually caused by blood clots that travel from the legs or other parts of the body.

Chest Pain

A symptom that can be caused by a variety of conditions, ranging from non-serious issues like indigestion to life-threatening ones like heart attacks.