The Most COMMON Method of Budgeting for Marketing Expenses Is

question 266

Multiple Choice

The most COMMON method of budgeting for marketing expenses is to:

• A) match competitors' spending.
• B) allocate any funds not already allocated to other functions.
• C) allocate enough to completely eliminate the cost of lost customers.
• D) allocate for the job that needs to be done.
• E) allow a percentage of either past or forecasted sales.

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Definitions:

Simple Interest

Interest determined purely on the original amount borrowed, or on the unpaid portion of that initial amount.

Special Account

An account designated for a particular purpose or offering special conditions or privileges.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the investment grows at an increasing rate.

Compounded Annually

A method of calculating interest in which the accumulated interest is added to the principal at the end of each year, with future interest then calculated on the new total.