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:

Neutral Stimulus

An environmental or external factor that initially produces no specific response other than focusing attention before conditioning.

Classical Conditioning

A training process involving the correlation between a stimulus from the environment and one that occurs inherently.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly paired with an unconditioned stimulus.

Operant

A term used in the science of behavior to describe an action or behavior that operates on the environment to produce consequences.