​You Are the Senior Financial Analyst Supporting the Marketing Department

question 31

Multiple Choice

​You are the senior financial analyst supporting the marketing department in your company, and head of marketing has asked you to come up with one performance metric that can be used to evaluate how effective each marketing campaign is in terms of contribution to the firm's profits. It should be a metric that can be easily used to compare different marketing campaign against each other.In response, you propose using:

• A)A metric that takes the total new sales dollars generated by a campaign and divides it by the total office expense of the campaign.
• B)A metric that takes the total new sales dollars generated by a campaign and divides it by the total fixed cost of the campaign.
• C)A metric that takes the total new sales dollars generated by a campaign and divides it by the total variable cost of the campaign.
• D)A metric that takes the total new sales dollars generated by a campaign and divides it by the total supplies expense for the campaign.
• E)A metric that takes the total new sales dollars generated by a campaign and divides it by the total cost of the campaign.

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Definitions:

Future Value

The value of a current asset or amount of money at a specified date in the future, adjusted for interest or inflation.

Discounted

Reduced in price or reflecting the present value of future cash flows when taking into account the time value of money.

Present Value

The value today of a future amount of money or series of payments, adjusted for a specific return rate.