Question

Which method of setting advertising budgets best helps management think about the relationship between promotion spending, selling price, and profit per unit? Group of answer choices percentage-of-sales method objective-and-task method adaptive-control method competitive-parity method affordable method

Answer 1

percentage-of-sales method

Step-by-step explanation:

Percentage-of-sales method -

It refers to the analysis of the financial statement where all the accounts are given as the ratio of the sales , is referred to as the percentage of sales method .

We can also say that , the net income , account received or paid , inventory , cash etc. all these financial statement line items are calculated as the percentage of revenue , is referred to as the percentage - of - sales method .

Hence , from the given information of the question ,

The correct answer is - percentage-of-sales method .