In the
Blank
______ budgeting approach, the amount of money spent on promotion is a percentage of past or anticipated sales.

Question

In the 
Blank
______ budgeting approach, the amount of money spent on promotion is a percentage of past or anticipated sales.

BlackTom AI · Accepted Answer

The question asks about a budgeting approach where the promotional spend is determined as a proportion of past or anticipated sales.
Option 1: 'all you can afford' suggests budgeting based on what funds remain after other costs, which is not tied to sales or promotional objectives and can lead to underfunding or misaligned promotion efforts.
Option 2: 'objective and task' budgeting involves setting specific objectives, identifying tasks needed to achieve them, and estimating the costs for those tasks; while it guides promotion through planned objectives, it is not defined by a fixed percentage of sales.
Option 3: 'percentage of sales' precisely describes the approach in the prompt: the promotion budget is a set percentage of past or expected sales, making spending scale with sales volume rather than objective-driven or competitor-driven benchmarks.
Option 4: 'competitive parity' budgeting bases the promo budget on what competitors spend to maintain parity; this emphasizes external competition rather than tying the budget to sales levels or internal objectives.

In the Blank ______ budgeting approach, the amount of money spent on promotion is a percentage of past or anticipated sales.

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