Critics of the percentage of sales method of budget setting contend that this method ""reverses the advertising and sales relationship"" and that it "&q…

Question

Critics of the percentage of sales method of budget setting contend that this method ""reverses the advertising and sales relationship"" and that it ""treats advertising as an expense rather than an investment."" What are your thoughts about these arguments?

Answer 1

Inverse relationship between sales and advertising

Step-by-step explanation:

Critics of the percentage of sales method of budget believe that advertising is a cost and not an investment as it is difficult to measure advertising, and it's impact on sales revenue. Thus, there is an inverse relationship between advertising and sales.