Which Method of Developing a Marketing Communications Budget Is Used

question 124

Multiple Choice

Which method of developing a marketing communications budget is used when the marketing budget is reduced as the brand reaches the point that additional dollars invested in communications yields diminishing returns?

• A)Percentage of sales
• B)Objective and task
• C)Payout planning
• D)Quantitative methods

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Definitions:

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid for management decisions.

Contribution Margin

The portion of sales revenue that exceeds variable costs, serving to cover fixed expenses and contribute to profits.

Fixed Manufacturing Cost

Involves the expenses that do not fluctuate with the level of production, such as rent for factory premises, salaries of permanent employees, and depreciation of factory equipment.

Relevant Range

The band of normal activity level or volume in which specific cost and revenue relationships hold true.