Under the Competitive Parity Method,the Communication Budget Is Set So

question 35

Multiple Choice

Under the competitive parity method,the communication budget is set so that _____.

• A) sales forecasts will not affect the budget
• B) it resembles a fixed percentage of sales
• C) surplus cannot be allocated to other categories
• D) the retailer's share of the communication expenses equals its share of the market
• E) retailers can exploit opportunities they confront in the market

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Definitions:

Cash Cycle

The cash cycle, also known as the cash conversion cycle, measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The period it takes for a business to acquire resources, produce inventory, sell it in the market, and eventually collect cash from the sale.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers and creditors for purchases made on credit.

Cash Cycle

The time period between the outlay of cash for the production process and the collection of cash from customers.