A Simple Measure of Return on Marketing Investment (Or Marketing

question 163

Multiple Choice

A simple measure of return on marketing investment (or marketing ROI) is ________.

• A)the net return from a marketing investment divided by the costs of the marketing investment
• B)the net return from all business activities divided by the cost of business investments
• C)the net return from sales increase attributable to advertising and promotion
• D)the net return from improvements in customer retention and loyalty
• E)None of the above-marketing ROI cannot be measured accurately.

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Definitions:

Net Method

An accounting method for recording purchases where the purchase price includes a cash discount for early payment.

Periodic Inventory System

An accounting method where inventory is physically counted and valued at set intervals, affecting the cost of goods sold calculation.

Discounts Lost

Refers to the additional cost a company incurs for not taking advantage of the cash discounts offered by suppliers for early payments.

Net Method

The Net Method is an accounting procedure that records the purchase of goods or services after deducting any discounts for early payment.