A Comparison of the Costs of Promotion to the Forecasted

question 145

Multiple Choice

A comparison of the costs of promotion to the forecasted sales generated by the promotion is called a ________.

• A)cost per thousand
• B)payout analysis
• C)response count
• D)response per thousand
• E)redemption assessment

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Definitions:

Gross Profit Rate

A profitability ratio that indicates how well net sales cover administrative and selling expenses.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Inventory Turnover Ratio

An asset management ratio that indicates how quickly inventory moves off the shelf and therefore how well a company sells its product.

Inventory Turns

Measures how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.