Even When a Specific Campaign Fails to Break Even in the Short

question 96

Multiple Choice

Even when a specific campaign fails to break even in the short run,it can still be profitable in the long run if ________ is/are factored in.

• A) customer lifetime value
• B) sales-force promotions
• C) price escalation effects
• D) indirect revenues
• E) all of the above

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Definitions:

LIFO method

An inventory cost-flow assumption where the last items purchased or produced are the first to be expensed as sold, opposite of FIFO.

Cost of merchandise sold

The total expense incurred to produce or purchase the goods sold by a company during a specific period.

Year amount

Typically refers to the total sums of money or quantities measured over the course of a year in financial or quantitative analyses.

Average costing

Average costing is an inventory costing method where all costs of inventory are averaged over the goods available for sale, providing a medium cost per unit.