COST ACCOUNTING
METHODS OF COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Why should you produce a costing method for your promotional plan?
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It determines how much a company should spend and where they should spend it
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It enables customerss to figure out practical steps to achieve goals
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Its a good idea
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Its common sense
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Explanation:
Detailed explanation-1: -It helps you determine the profitability of your operations and how to set prices.
Detailed explanation-2: -The simplest method for determining the promotion budget is often merely using a percentage of last year’s sales or the projected sales for the next year. This method does not take into account any changes in the market or unexpected circumstances.
Detailed explanation-3: -The most important and used promotion budget methods are: percent method from incomes, the method based on the existing resources, the competitive alignment method, the method based on objectives and promotional activities and the method using marketing research.
There is 1 question to complete.