Budgeting for Promotion Expenditures by Computing a Percentage of Past

question 197

Multiple Choice

Budgeting for promotion expenditures by computing a percentage of past or expected sales

• A) is the most common method of setting the promotion budget.
• B) is a complex method of budgeting.
• C) will increase promotional expenditures when business is poor.
• D) is especially suitable for new products.
• E) none of these alternatives is correct.

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Definitions:

Intercept

In regression analysis, the point where the line of best fit intersects the y-axis, indicating the expected value of the dependent variable when all independent variables are zero.

Dependent Variable

In an experiment or model, it is the variable being tested and measured, which is expected to change as a result of manipulations of the independent variable(s).

Independent Variable

A variable in an experiment or model that is manipulated to determine its effect on a dependent variable.

Y-intercept

The location at which a line intersects the Y-axis on a graph.