Which of the Following Refers to a Method of Determining

question 112

Multiple Choice

Which of the following refers to a method of determining a communications budget based on what is left over after other operating costs have been covered?

• A)percentage-of-sales method
• B)objective-and-task method
• C)competitive parity method
• D)brand equity method
• E)affordable budgeting method

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Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Acid-test Ratio

Acid-test ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and current receivables) without selling any inventory.

Debt-to-equity Ratio

A ratio illustrating the proportional use of shareholder equity and debt in the acquisition of a company's assets.

Receivable Turnover

A financial metric indicating the efficiency of a company in collecting its accounts receivable or the effectiveness of its credit policy.