In Using More Sophisticated Planning Models, Which One of the Following

question 19

Multiple Choice

In using more sophisticated planning models, which one of the following statements is NOT true?

• A) Current liabilities are likely to vary directly with sales.
• B) Long-term liabilities and equity accounts change as a direct result of managerial decisions.
• C) Retained earnings will vary directly as sales changes.
• D) All of the above are true

Recognize the influence of researcher and participant biases in research outcomes.

Appreciate the significance of external and internal validity in research design.

Understand the circumstances under which dividends become a liability for corporations.

Recognize how unexpected company developments may impact preferred and common shareholders.

---

Definitions:

Promotion-To-Sales Ratio

A metric in marketing that compares the cost of marketing and promotion efforts to the resulting sales volume.

Promotional Efforts

Marketing activities aimed at increasing awareness, interest, and sales of a product or service through various strategies and channels.

Objective and Task Budgeting

A method of budget setting where a company first defines its objectives and then estimates the cost of all tasks needed to achieve these objectives.

Promotion Objectives

Refers to the goals a company aims to achieve through its promotional activities, such as increasing brand awareness or sales.