A simple method that companies can use in setting their advertising budgets. This is typically based upon a certain percent of prior sales and/or via a prediction of sales that may be made in the future.
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- Percentage of Sales Method
The Percentage of Sales Method is a Financial Forecasting approach which is based on the premise that most Balance Sheet and Income Statement Accounts ...
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Definition of percentage of sales method: General: Method of estimating cash requirements by expressing revenues and expenses as percentages of sales, and ...
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- Percentage-Of-Sales Method: Definition from Answers.com
percentage-of-sales method Procedure used to set advertising budgets, based on a predetermined percentage of past sales or a forecast of future sales.
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percentage-of-sales method definition: 1. A widely used method of establishing an advertising budget based on a percentage of past, current, or future sales or ...
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Percentage of sales method is an income statement approach for estimating bad ... In percentage of sales method, the balance in the allowance for doubtful ...