If a Low-Risk Marketing Program Has a Return on Marketing

question 84

Multiple Choice

If a low-risk marketing program has a return on marketing investment (ROMI) of 4.0, this means that any marketing program must generate at a minimum $4.00 in revenue for every ________ in marketing expenditure.

• A) $1
• B) $20
• C) $100
• D) $200
• E) $5

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Definitions:

Investing Activities

Financial transactions that relate to the acquisition or sale of assets, investments, and other long-term items that are not part of the company's primary operations.

Amortization

The process of gradually reducing the cost of an intangible asset through scheduled charges to expense over its useful life.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate cash flow from operating activities.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.