A Budgeting Method That Allocates Funds to a Promotion as a Percentage

question 223

Multiple Choice

A budgeting method that allocates funds to a promotion as a percentage of past or anticipated sales, in terms of either dollars or units sold, is referred to as ________ budgeting.

• A) percentage of sales
• B) competitive parity
• C) all-you-can-afford
• D) objective and task
• E) linear forecast

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Definitions:

Perceptual Bias

is the tendency to perceive information based on one's own beliefs, expectations, and experiences, often leading to distorted interpretations.

The Halo Effect

A cognitive bias where an individual's overall impression of a person, company, brand, or product influences feelings and thoughts about that entity's character or properties.

Group Polarization

The tendency for a group's prevailing attitudes or beliefs to become more extreme following discussion among group members.

Risky Shift

Is the phenomenon where groups tend to make riskier decisions together than individuals would on their own, often attributed to the diffusion of responsibility.