Which of the Following Budgeting Methods Requires a Marketing Manager

question 57

Multiple Choice

Which of the following budgeting methods requires a marketing manager to use input from a clipping service?

• A)ROI method
• B)arbitrary allocation method
• C)percentage-of-sales method
• D)competitive parity method
• E)objective and task method

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Definitions:

Key Components

Essential parts or elements that make up a larger system or process.

Acid-Test Ratio

A liquidity ratio that measures a company's ability to pay off its current liabilities with quick assets.

Company's Liquidity

The ability of a company to meet its short-term financial obligations by quickly converting assets into cash without significant loss.

Gross Margin Ratio

A financial metric that measures a company's financial health by dividing its gross profit by net sales, indicating the percentage of sales revenue remaining after deducting the cost of goods sold.