Why Have Advertisers Had Difficulty Measuring the Return on Investment

question 23

Essay

Why have advertisers had difficulty measuring the return on investment (ROI)of their campaigns,and what alternatives have they developed?

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, payroll, taxation, and interest.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, rather than continuously.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to prepare financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary accounts to permanent ones, preparing the company's books for the next period.