A Car Dealership Is Switching How It Determines Its Advertising

question 128

Multiple Choice

A car dealership is switching how it determines its advertising appropriation. They are moving from an approach where they set their budget based on their projected revenue for the coming year to one in which it identifies the cost required to meet certain goals. They are switching from the _____ approach to the _____ approach.

• A) competitive-matching; arbitrary
• B) percentage-of-sales; competitive-matching
• C) competitive-matching; objective-and-task
• D) percentage-of-sales; objective-and-task
• E) arbitrary; competitive-matching

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Definitions:

GAAP

In any particular legal area, the Generally Accepted Accounting Principles are the recognized standard of guidelines for conducting financial accounting.

Probable

Probable refers to the likelihood that a future event will occur, often used in accounting to determine if a contingent event should be recorded.

Warranty Obligations

Warranty obligations are promises made by a seller to a buyer to repair, replace, or rectify defects in goods sold within a certain period after the sale.

Premium Offer

A premium offer is a marketing strategy where additional value is added to the regular product or service offering to encourage purchase or enhance customer satisfaction.