Managers Who Do Not Recognize the Benefits of Marketing May

question 139

Multiple Choice

Managers who do not recognize the benefits of marketing may be most inclined to use which method of communications budgeting?

• A)Percentage of sales
• B)Meet the competition
• C)What we can afford
• D)Payout planning

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to pursue a particular action.

Accounting Costs

Costs that appear on the financial statements of a company.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to optimize benefits.

Sunk Cost

A cost that has already been incurred and cannot be recovered. It should not impact future business decisions because it cannot be changed.