A Major Disadvantage of the Percentage-Of-Sales Method to Budgeting Is

question 77

True/False

A major disadvantage of the percentage-of-sales method to budgeting is that firms who allocate a random dollar amount to the promotion mix guarantee virtually nothing except that the money will be spent.

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Definitions:

Deviations

Differences between observed values and the average or expected values in a data set.

Median

The middle value of a data set, where half the numbers are below and half are above this value.

Mean

The average of a set of numbers, calculated by summing all the numbers and then dividing by the count of those numbers.

Frequency Distribution

A summary of data showing how often each value occurs.