Advertising Appropriation

More easily thought of as an "advertising budget," this is the amount of money a firm spends on advertising activity, and can be set using absolute amounts, relative amounts (i.e., "n % of…"), competitive market data, or other targets.

Huey, Dewey, and Louie each entered the apparel business, wanting to sell outfits consisting of matching caps and sweaters (but never pants). Each outfit sells for $100. Huey decides to spend $10 per outfit to advertise, Dewey decides to limit his advertising appropriation to 10% of revenue, and Louie thinks it best to set his advertising budget equal to the average spent by his competition. In this pant-forsaken world, they each had an advertising appropriation of $10 per outfit, based on completely different strategies, ultimately making profits a function of other factors like manufacturing costs, tax jurisdictions, and/or subsidies based on favoritism from Uncle Scrooge.