ECONOMICS

COST ACCOUNTING

METHODS OF COSTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

You have allocated your marketing budget based on what you think you can afford. What Costing Method is this?

A	Matching Competitors
B	The Pound Approach
C	Percentage of Sales
D	Marketing Plan Objectives

Explanation:

Detailed explanation-1: -Here they are, starting with the most widely used method, the percentage of revenue: Percentage of revenue – The marketing budget is derived as a percentage of the overall organization’s expected revenue for the fiscal year.

Detailed explanation-2: -There are three primary calculations you need to make before deciding how much to allocate for your marketing budget: Customer Lifetime Value (LTV) Customer Acquisition Cost (CAC) Customer Profitability (CP)

Detailed explanation-3: -A marketing budget is simply an instrument to help you achieve your business goals. If your goals aren’t clear, you need to step back and work with your team to develop an up-to-date business strategy. It should include objectives for the coming months and years, and an action plan for achieving them.

There is 1 question to complete.