This is one of the most popular strategies of allocating advertising spending. This strategy forecasts promotional and advertising costs based on the previous year's proportion of sales.
Investment spending is an attempt to promote output through the acquisition or creation of capital goods. But what exactly is meant by capital goods? Capital goods are a company's assets, such as machinery or other equipment that are used or required to manufacture other items. In our previous example, the machinery utilized to manufacture the objects we like are capital goods. Investment expenditure is undertaken in the belief that the costs paid will result in long-term returns. Investment spending is undertaken by businesses, individuals, and even the government. An investment is usually the outflow of some resource today—time, effort, money, or an asset—with the hope of a bigger payback later than what was first put in. As an example, consider an investor.
To know more about spending:
https://brainly.com/question/29941152
#SPJ4
