Which of the following statements describes a weakness inherent in the use of the marginal analysis model for establishing an advertising budget?
A. It is unsuitable as a basis for budgeting in case of direct response advertising.
B. Only environmental factors that are considered by the model will affect the effectiveness of the promotional program.
C. Budgetary amount is often set by fiat.
D. The budget is determined by management solely on the basis of what is felt to be necessary.
E. It is very illogical and virtually no theoretical base is used to determine the budgets.
Answer: E