The Promotion-To-Sales Ratio Can Be Used by Managers to Make

question 281

Multiple Choice

The promotion-to-sales ratio can be used by managers to make year-to-year comparisons of their programs, to compare the effectiveness of their programs with competitors' programs, or to make comparisons with

• A)calculated break-even points.
• B)estimated return on investments.
• C)promotion-to-expense ratios.
• D)industry averages.
• E)advertising-to-sales promotion ratios.

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Definitions:

Residual Value

The estimated value that an asset will have at the end of its useful life, also known as salvage value.

Net Book Value

The value of an asset as recorded on the balance sheet, calculated as the original cost minus accumulated depreciation and impairments.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in an equal annual amount.

Depreciable Cost

The cost of a fixed asset minus its salvage value, which is the total amount that can be depreciated over its useful life.