Which of the Following Is the Most Likely Reason Why

question 58

Multiple Choice

Which of the following is the most likely reason why a small firm would not want to measure the effectiveness of promotional programs it designed?

• A) Costs
• B) Disagreement as to what to test
• C) The objections of creative people
• D) Lack of time

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Definitions:

Fixed

Costs that do not change with the level of production or sales activity, such as rent, salaries and insurance.

Variable

A quantity that can change or vary, often used in mathematics and statistics to represent an element that can assume different values.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed to variable costs.

Fixed Costs

Fixed Costs are business expenses that remain constant regardless of the level of production or sales activity, such as rent, salaries, and insurance.