Which of the Following Statements Describes an Inherent Weakness in the Use

question 48

Multiple Choice

Which of the following statements describes an inherent weakness in the use of the marginal-analysis model for establishing an advertising budget?

• A)It is unsuitable as a basis for budgeting only in the case of direct response advertising.
• B)It only considers environmental factors that affect the effectiveness of the promotional program.
• C)The budget is often set according to the FIFO method.
• D)The budget is determined by management solely on the basis of what is felt to be necessary.
• E)It assumes that sales are determined solely by advertising and promotion.

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Definitions:

Neonatal

Pertaining to the newborn period, specifically the first 28 days of life, focusing on medical care and conditions of newborn infants.

Fetal

Pertaining to a fetus, which is a developing human from roughly eight weeks after conception until birth.

Prenatal

Pertains to the period or development before the birth of a baby.

Ectoderm

The primary germ layer that gives rise to nervous tissue and some epithelial tissue.