What Is the First Step in Marketing Cost Analysis

question 197

Multiple Choice

What is the first step in marketing cost analysis?

• A) Allocating functional cost to customers.
• B) Reallocating costs to evaluate profitability of profit centers.
• C) Analyzing the results.
• D) Reclassifying dollar cost entries into functional cost accounts.
• E) Initiating a follow-up.

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Definitions:

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Percentage of Sales Approach

A forecasting method that estimates future financial outcomes based on a percentage relationship between sales growth and other financial accounts.

Financial Planning

The process of setting objectives, assessing assets and resources, estimating future financial needs, and making plans to achieve monetary goals.

Pro Forma Statement

A financial report created by making assumptions about events and transactions that have not yet taken place.