The Purpose of Profitability Control Is to ________

question 93

Multiple Choice

The purpose of profitability control is to ________.

• A) examine whether the planned results are being achieved
• B) examine where the company is making and losing money
• C) evaluate and improve the spending efficiency and impact of marketing expenditures
• D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels
• E) understand the efficiency of the sales force, advertising, sales promotion, and distribution

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Definitions:

Net Present Value

A financial metric that calculates the present value of an investment's cash inflows and outflows over time to determine its profitability.

Budget

An estimate of income and expenditure for a set period of time, often used to plan and control finances within organizations or by individuals.

Orlando

A city in central Florida, known for its theme parks, including Walt Disney World and Universal Studios.

Minnesota

A state located in the Midwestern United States, known for its large number of lakes and cold winters.