What are the disadvantages associated with using the percentage-of-sales method for establishing a retail communication budget?
What will be an ideal response?
The problem with the percentage-of-sales method is that it assumes that the same percentage used in the past, or used by competitors, is appropriate for the future. Also, it assumes that communication expenses don't stimulate sales and profit.
You might also like to view...
If Sun Company acquired Star, Inc. many years ago in a pooling of interests transaction, the entry would have used which one of the following to account for the pooling?
A. Book value of Star's assets B. Future value of Star's assets C. Fair value of Star's assets D. Net present value of Star's assets
The ___________ defines team members as joint problem solvers rather than adversaries.
a. unite approach b. groupthink approach c. nominal group approach d. meetingthink approach
Which of the following statements is TRUE if the variable cost per unit increases while the sales price per unit and total fixed costs remain constant?
A) The breakeven point decreases. B) The contribution margin increases. C) The breakeven point remains the same. D) The breakeven point increases.
When the terms are FOB destination, the title passes at the destination and the seller pays the transportation costs
Indicate whether the statement is true or false