Budgeting for marketing expenses by computing a percentage of forecasted sales:
a. is especially suitable for new products.
b. always results in increased expenditure levels from year to year.
c. is very complicated--and thus this method is not used very often.
d. may lead to a drop in marketing expenses at a time when the firm wants to maintain or expand sales.
e. tends to result in large changes in marketing expenses from year to year.
Answer: d. may lead to a drop in marketing expenses at a time when the firm wants to maintain or expand sales.