The Affordable Method of Budgeting for Promotion Recognises the Effect

question 8

True/False

The affordable method of budgeting for promotion recognises the effect of promotion on sales volume.

---

Definitions:

Inventory Carrying Costs

The total cost associated with holding inventory, including storage, handling, depreciation, and opportunity costs.

Capital Costs

Expenses incurred to create or acquire fixed assets, such as buildings or machinery, that are used in producing goods or services.

Inventory Service Costs

Expenses associated with storing, handling, and managing inventory, including warehousing and insurance costs.

Independent Demand Items

Products or services for which demand is influenced by market conditions and customer preferences, not related to the production plans for other items.