Annual-Plan Control Requires Making Sure the Company Isn't Overspending to Achieve

question 81

Multiple Choice

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ________.

• A) stock turnover
• B) gross margin
• C) return on capital
• D) cash flow return on investment
• E) marketing expense-to-sales

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Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Taxable Income

The portion of an individual's or company's income used to determine how much tax is owed to the government.

Government Spending

Expenditures made by the government sector on goods and services, including infrastructure, education, and defense.

Taxes

Essential monetary obligations or assorted forms of taxes imposed on individuals by government organizations, designed to facilitate government budgeting and various public expenditure.