Which of the Following Is True Regarding Annual-Plan Control

question 3

Multiple Choice

Which of the following is True regarding annual-plan control?

• A) This control process begins by identifying the causes of serious performance deviations.
• B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.
• C) The marketing controller has the primary responsibility for annual-plan control.
• D) Its purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures.
• E) It measures profitability by product, territory, customer, segment, trade channel, and order size.

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Definitions:

Overhead Cost

Expenses that are not directly attributed to creating a product or service but are necessary for running the business, such as rent, utilities, and office supplies.

Products

Items or goods that are manufactured or refined for sale.

Activity-Based Costing

A costing methodology that assigns the costs of overhead activities to products or services based on their consumption of those activities, aiming to provide more accurate cost information.

Activity Cost Pools

Pools of overhead costs assigned to products and services according to the activities that drive costs.