Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an advertising budget?
A. It only considers environmental factors that affect the effectiveness of the promotional program.
B. It is unsuitable as a basis for budgeting only in the case of direct-response advertising.
C. The budget is determined by management solely on the basis of what is felt to be necessary.
D. It assumes that sales are determined solely by advertising and promotion.
E. The budget is often set according to the FIFO method.
Answer: D
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