Preview Extract
Chapter 11 Finance
1) The volume of sales (or calendar date) at which sales revenue of a product or service
equals its costs is known as the ________.
A) Keynesian endpoint
B) break-even point
C) Morris-Putnam point
D) reorder point
Answer: B
Rationale:
The break-even point is the level of sales at which total revenue equals total costs, resulting
in zero profit or loss. It's a fundamental concept in business analysis to determine the
minimum level of sales needed to cover all costs.
2) ________ are costs which stay constant regardless of the number of units made (within
limits).
A) Switching costs
B) Sunk costs
C) Variable costs
D) Fixed costs
Answer: D
Rationale:
Fixed costs are expenses that remain constant irrespective of the level of production or sales.
Examples include rent, insurance, salaries of permanent staff, etc.
3) ________ are costs which change according to the number of units made, such as parts and
materials per unit, as well as direct production labor per unit.
A) Overhead costs
B) Sunk costs
C) Switching costs
D) Variable costs
Answer: D
Rationale:
Variable costs vary with the level of production or sales. These costs include raw materials,
direct labor, packaging, and other costs that are directly tied to the production process.
4) Which of the following formulas is used to calculate the break-even volume in terms of the
number of units?
A) Break-even Volume = (Fixed Cost + Variable cost)/(Price)
B) Break-even Volume = ((Fixed Cost)/(Unit cost))*100
C) Break-even Volume = (Fixed Cost)/(Price - Unit Cost)
D) Break-even Volume = (Unit Cost - Fixed Cost)/Price
Answer: C
Rationale:
The break-even volume in terms of units can be calculated by dividing the fixed costs by the
difference between the price per unit and the variable cost per unit. This formula accounts for
both fixed and variable costs to determine the number of units needed to cover all costs and
break even.
5) A baker buys an oven for his new bakery at the cost of $6,000 to bake bread. Each bread
loaf is baked at the cost of $3, which includes the costs of electricity, dough, packaging, etc.
The baker sells each loaf of bread for $6. At what point (in terms of sales) does he expect to
break even?
A) 500 loaves
B) 1,000 loaves
C) 1,500 loaves
D) 2,000 loaves
Answer: D
Rationale:
Using the break-even formula (Break-even Volume = Fixed Cost / (Price - Unit Cost)), we
find Break-even Volume = $6,000 / ($6 - $3) = 2,000 loaves. Therefore, the baker expects to
break even after selling 2,000 loaves of bread.
6) Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a
new range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers are estimated at $400,000. The cost of producing a single unit is
$200. The company prices these speakers at $400. The sales forecast projects that 1,800 units
will be sold by the end of the first year, 4,200 more in the second year, and 2,500 during the
third year after launch. At what point in time is the company most likely to break even?
A) six months
B) twelve months
C) fifteen months
D) eighteen months
Answer: B
Rationale:
To find the break-even point in time, we need to calculate the total contribution margin (total
revenue - total variable costs) and see when it exceeds the total fixed costs. Given the sales
forecast and pricing information, it's likely that the company will break even after one year,
as it accumulates enough sales revenue to cover the fixed costs.
7) A(n) ________ is a financial statement showing expected financial results of a venture in a
standard format.
A) pro forma operating income statement
B) balance sheet
C) statement of comprehensive income
D) statement of retained earnings
Answer: A
Rationale:
A pro forma operating income statement is a financial statement that shows projected
revenues, expenses, and profits or losses over a specific period, usually prepared for new
ventures or planned business activities.
8) ________ is the total amount of money a seller makes by selling a product before any
costs are subtracted.
A) Net income
B) Profit
C) Economic surplus
D) Revenue
Answer: D
Rationale:
Revenue is the total income generated by selling goods or services before deducting any costs
or expenses.
9) Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a
new range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers are estimated at $400,000. The cost of producing a single unit is
$200. The company prices these speakers at $400. The sales forecast projects that 1,800 units
will be sold by the end of the first year, 4,200 more in the second year, and 2,500 during the
third year after launch. What is the total expected revenue for the first year from the sales of
the speakers?
A) $560,000
B) $640,000
C) $720,000
D) $840,000
Answer: C
Rationale:
Total expected revenue for the first year can be calculated by multiplying the number of units
sold by the selling price per unit. In this case, 1,800 units sold at $400 each yield a total
revenue of $720,000.
10) The ________ represents the amount of money a seller makes before any expenses are
subtracted.
A) return on capital
B) gross margin amount
C) net profit
D) return of capital
Answer: B
Rationale:
The gross margin amount represents the difference between the total revenue and the total
cost of goods sold, indicating the profit made by the seller before deducting any operating
expenses.
11) Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a
new range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers are estimated at $500,000. The cost of producing a single unit is
$250. The company prices these speakers at $450. The sales forecast projects that 2,000 units
will be sold by the end of the first year, 4,500 more in the second year, and 2,500 during the
third year after launch. What is the cost of goods sold in the first year?
A) $400,000
B) $250,000
C) $360,000
D) $500,000
Answer: D
Rationale:
Cost of goods sold (COGS) represents the total cost incurred to produce the units sold. In this
case, with 2,000 units sold at $250 each, the COGS for the first year would be $500,000.
12) Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a
new range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers are estimated at $500,000. The cost of producing a single unit is
$250. The company prices these speakers at $450. The sales forecast projects that 2,000 units
will be sold by the end of the first year, 4,500 more in the second year, and 2,500 during the
third year after launch. What is the gross margin amount for the first year?
A) $240,000
B) $360,000
C) $400,000
D) $540,000
Answer: C
Rationale:
Gross margin is calculated as revenue minus the cost of goods sold. With 2,000 units sold at
$450 each and a cost of goods sold of $250 per unit, the gross margin for the first year would
be $400,000.
13) The ________ represents the contribution margin divided by revenue.
A) gross margin percentage
B) return of capital
C) capitalization rate
D) markup rate
Answer: A
Rationale:
Gross margin percentage is the gross margin divided by revenue. It represents the portion of
revenue that contributes to covering fixed costs and profit.
14) Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a
new range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers are estimated at $500,000. The cost of producing a single unit is
$250. The company prices these speakers at $400. The sales forecast projects that 2,000 units
will be sold by the end of the first year, 4,500 more in the second year, and 2,500 during the
third year after launch. What is the gross profit margin percentage for the first year?
A) 25%
B) 37.5%
C) 50%
D) 62.5%
Answer: B
Rationale:
Gross profit margin percentage is calculated as (Revenue - Cost of Goods Sold) / Revenue *
100. In this case, with a revenue of $450 per unit and a cost of goods sold of $250 per unit,
the gross profit margin percentage for the first year would be ((450 - 250) / 450) * 100 =
37.5%.
15) Braun Schiffer is a maker of high-quality audio speakers. It is on the verge of launching a
new range of high-powered, yet extremely compact, speakers. The fixed overhead costs for
production of these speakers are estimated at $500,000. The cost of producing a single unit is
$250. The company prices these speakers at $600. The sales forecast projects that 2,000 units
will be sold by the end of the first year, 5,000 more in the second year, and 2,500 during the
third year after launch. The total expenses were $540,000, $1,500,000, and $700,000, for the
first, second, and the third years respectively. What is the operating income in the second
year?
A) $250,000
B) $500,000
C) $750,000
D) $1,000,000
Answer: A
Rationale:
Operating income is calculated as total revenue minus total expenses. In the second year, total
revenue can be calculated as the number of units sold multiplied by the selling price per unit,
which is 5,000 units * $600 = $3,000,000. Total expenses are given as $1,500,000. Therefore,
the operating income in the second year would be $3,000,000 - $1,500,000 = $1,500,000.
16) A(n) ________ refers to a financial appraisal of a company's proposed long-term
investments.
A) cost-volume-profit analysis
B) activity-based costing analysis
C) capital budgeting analysis
D) break-even point analysis
Answer: C
Rationale:
Capital budgeting analysis involves evaluating long-term investment opportunities to
determine whether they are worth pursuing based on their potential to generate returns that
exceed the cost of capital.
17) ________ is a method of discounting future cash flows to calculate future value in today's
dollars, often used in capital budgeting analysis.
A) Equivalent annual cost analysis
B) Profitability index analysis
C) Net present value analysis
D) Internal rate of return analysis
Answer: C
Rationale:
Net present value (NPV) analysis discounts future cash flows to their present value using a
discount rate, allowing for the comparison of different investment opportunities on a
consistent basis.
18) The ________ in a net present value analysis refers to the rate by which the cash flows
are reduced to reflect the time value of money.
A) inflation rate
B) discount rate
C) hurdle rate
D) reference rate
Answer: B
Rationale:
The discount rate in NPV analysis represents the cost of capital or the opportunity cost of
investing elsewhere, reflecting the time value of money.
19) ________ refers to a company's required rate of return, often used in capital budgeting
analysis.
A) Hurdle rate
B) Reference rate
C) Discount rate
D) Burn rate
Answer: A
Rationale:
The hurdle rate is the minimum rate of return that a company requires from an investment to
proceed with it, often based on the company's cost of capital or other factors.
20) An internal rate of return analysis ________.
A) incorporates the time value of money by discounting the cash flows from the proposed
project to their present value using the discount rate
B) calculates the rate of return based on the plan's discounted cash flows and compares it to
the company's required rate of return
C) estimates the expected sales volume or time period required for a company to break even
and rates a proposed project along the lines of how soon the break-even point is reached
D) compares investment projects of unequal lifespans or scales of investment and predicts the
short-term viability of one project with reference to the other
Answer: B
Rationale:
Internal rate of return (IRR) analysis calculates the discount rate that makes the net present
value of all cash flows from a project equal to zero, providing a measure of the project's
profitability relative to the company's required rate of return.
21) What is the portion of total sales that SCORE (Service Corps of Retired Executives, "the
Counselors to America's Small Business") and the U.S. SBA (Small Business Administration)
advise small businesses to allocate for marketing budgets?
A) more than 20 percent
B) 10-20 percent
C) at least 25 percent
D) 2-10 percent
Answer: D
Rationale:
SCORE and the U.S. SBA typically advise small businesses to allocate approximately 2-10
percent of their total sales revenue for marketing budgets, although this can vary depending
on factors such as industry, business size, and growth stage.
22) Which of the following is part of the social media and digital marketing expenses part of
the marketing budget?
A) media placement expenses
B) creative development expenses
C) press release wire fees
D) search engine optimization expenses
Answer: D
Rationale:
Search engine optimization (SEO) expenses are typically part of social media and digital
marketing efforts aimed at improving a company's visibility and ranking in search engine
results pages.
23) Which of the following is part of the public relations expenses part of the marketing
budget?
A) media placement expenses
B) press release wire fees
C) SEO expenses
D) training expenses
Answer: B
Rationale:
Press release wire fees are commonly included in public relations expenses as they cover the
costs associated with distributing press releases to media outlets and other relevant channels.
24) Line item expenditures for which among the following products are more likely to remain
constant month after month?
A) children's toys
B) women's clothing
C) consumer electronic goods
D) industrial equipment
Answer: D
Rationale:
Expenditures for industrial equipment are more likely to remain constant month after month
due to the relatively stable nature of industrial procurement cycles and the long-term planning
involved in purchasing such equipment.
25) Marketing expenses for which among the following products are more likely to vary
widely month after month?
A) iron ore
B) children's toys
C) industrial spares
D) timber
Answer: B
Rationale:
Marketing expenses for children's toys are more likely to vary widely month after month due
to seasonal factors, marketing campaigns tied to holidays or special events, and fluctuations
in consumer demand.
26) Rent, depreciation, and insurance are examples of fixed costs that go into the making of a
product.
Answer: True
Rationale:
Fixed costs are expenses that remain constant regardless of the level of production or sales.
Rent, depreciation, and insurance are typical examples of fixed costs incurred in the
production process.
27) Unit cost is calculated by the difference between fixed costs and variable costs.
Answer: False
Rationale:
Unit cost is calculated by adding together both fixed costs and variable costs and then
dividing by the number of units produced. It is not calculated by subtracting fixed costs from
variable costs.
28) An increase in the fixed and variable costs of a product result in a lowering of the breakeven point.
Answer: False
Rationale:
An increase in both fixed and variable costs will raise the break-even point because it will
require higher sales volume to cover the increased costs and reach the point of breaking even.
29) Pro formas are widely used to assess the progress made by implemented projects, usually
midway through their lifespans.
Answer: False
Rationale:
Pro formas are financial statements that project future financial performance based on
assumptions and forecasts. They are typically used before projects are implemented to
estimate potential outcomes, not to assess progress midway through their lifespans.
30) The gross margin amount is the sum of the full absorption cost and the revenue generated
through sales.
Answer: False
Rationale:
The gross margin amount is calculated as the difference between revenue and the cost of
goods sold (COGS), not the full absorption cost. It represents the contribution of each sale
towards covering fixed costs and generating profit.
31) The total expenses represent all the miscellaneous, nonproduction costs associated with
making the product.
Answer: True
Rationale:
Total expenses include all costs incurred by a business, including both production and
nonproduction costs such as administrative expenses, marketing expenses, rent, utilities, etc.
32) The net present value analysis calculates the rate of return based on the plan's discounted
cash flows and compares it to the company's required rate of return.
Answer: False
Rationale:
The net present value (NPV) analysis calculates the present value of future cash flows
discounted at the required rate of return or discount rate. It compares the present value of
cash inflows and outflows to determine whether an investment is economically viable. It does
not directly calculate the rate of return.
33) For small businesses, SCORE (Service Corps of Retired Executives, "the Counselors to
America's Small Business") and the U.S. SBA (Small Business Administration) advise a total
marketing budget of 2 percent – 10 percent of sales.
Answer: True
Rationale:
SCORE and the U.S. SBA commonly recommend that small businesses allocate
approximately 2 percent to 10 percent of their total sales revenue for marketing budgets.
34) The sales promotions category in a marketing budget includes items such as the cost of
developing, advertising, and holding an event created by the organization.
Answer: False
Rationale:
The sales promotions category in a marketing budget typically includes costs associated with
activities such as discounts, coupons, rebates, sales events, and other promotional tactics
aimed at stimulating sales. The costs of developing, advertising, and holding events are
usually categorized separately, such as under advertising or event marketing.
35) What is the break-even point of an organization?
Answer: When organizations invest in new products and services, they want to know the
point at which the revenue from that product or service will equal or exceed its costs. The
point is called the break-even point. Break-even points can be described in units (i.e., how
many units must we produce before we begin to turn a profit?) or in time (at what time in the
future will we begin to make a profit?).
36) What are the various types of information required to construct a break-even analysis?
Answer: To construct a break-even analysis, we gather the following information: NAICS
code, fixed cost, unit cost, the manufacturer's suggested retail price (MSRP) of the unit, and a
sales forecast that shows the projected unit sales over time.
37) Write a note on unit costs.
Answer: Unit cost is the cost to produce each unit, including material and labor as well as any
allocated overhead costs. In equation form, we have: Unit cost = Variable cost + Fixed
cost/Unit sales. Fixed costs are costs which stay constant regardless of the number of units
made (within limits). Examples include rent, depreciation, and insurance. Variable costs are
costs which vary according to the number of units made, such as parts and materials per unit,
as well as direct production labor per unit.
38) Explain the role of a sales forecast in break-even analysis.
Answer: A sales forecast gives information on the expected number of units to be sold per
year for the next three years. We arrive at the forecast by examining the actual sales history of
similar units sold in the past, adjusting those numbers to reflect current situations.
39) What is a pro forma operating income statement?
Answer: A pro forma operating income statement is a statement forecasting the income that a
product or service will generate over the next three years.The Latin term pro forma means "as
a matter of form," and shows expected financial results of a venture in a standard format. Pro
formas are widely used for new ventures, because they indicate the anticipated profitability of
proposed plans.
40) Write a note on gross margin amount. How is it calculated?
Answer: The gross margin amount represents the amount of money we make before any
expenses are subtracted. To calculate the gross margin amount, we subtract the full absorption
cost from revenue. The full absorption cost is defined as the sum of variable costs (direct
labor and materials costs) as well as overhead costs allocated to that product line.
Alternatively, we can use the term contribution margin, which is computed as revenue less
variable costs.
41) What is gross margin percentage? How is it calculated?
Answer: The gross margin percentage represents the contribution margin divided by revenue.
A company can compare its gross margin with that of other similar products in its industry
and determine if it is higher or lower than the industry average (higher is better). To calculate
gross margin percentage, the following formula is used:
Gross Margin Percentage = (Revenue - Cost of Goods Sold)/Revenue
42) Define internal rate of return. What is the advantage of using internal rate of return as
compared to net present value?
Answer: The internal rate of return (IRR) analysis, calculates the rate of return based on the
plan's discounted cash flows and compares it to the company's required rate of return
(sometimes called the hurdle rate). Some companies prefer the IRR technique to that of NPV,
because IRR provides the actual expected rate of return, whereas NPV only indicates a go/nogo decision of a single project, or the relative attractiveness of multiple projects compared
with their respective NPVs.
43) Explain advertising expenses as part of a marketing plan budget.
Answer: Typical advertising expenses include items such as creative development, media
placements (such as television, radio, or print), agency costs, and advertising to distribution
channels (for push-oriented campaigns). Advertising is the largest expense category for many
companies.
44) What are the direct marketing expenses involved in a marketing plan budget?
Answer: Common direct marketing expenses include items such as purchasing contact lists to
target individual prospects (such as fees from contact list provider InfoUSA, infousa.com),
email transmission fees based on the quantity of emails sent (such as expenses from email
delivery firm Constant Contact, constantcontact.com), printing and mailing expenses (for
direct mail campaigns), as well as the cost of the offer that compels targets to respond.
45) What information needs to be gathered for a break-even analysis?
Answer: To construct a break-even analysis, the following information is gathered: NAICS
code, fixed cost, unit cost, the manufacturer's suggested retail price (MSRP) of the unit, and a
sales forecast that shows the projected unit sales over time.
• Fixed Cost: Fixed costs are costs which stay constant regardless of the number of units
made (within limits). Examples include rent, depreciation, and insurance.
• Unit Cost: Unit cost is the cost to produce each unit, including material and labor as well as
any allocated overhead costs. In equation form, we have: Unit cost = (Variable cost + Fixed
cost)/Unit sales. Variable costs are costs which vary according to the number of units made,
such as parts and materials per unit, as well as direct production labor per unit.
• Price: A company might conduct market research to determine typical competitive pricing
for products similar to its own, as well as poll representatives of its target market for
indications for what they would expect to pay for such a unit.
• Sales Forecast: A sales forecast gives the company the expected number of units to be sold
per year for a fixed period of time. A forecast is arrived at by examining the actual sales
history of similar units sold in the past, adjusting those numbers to reflect current situations.
• Break-even Volume Calculation: The break-even volume (number of units) is calculated
according to the following formula:
Break-even Volume = (Fixed Cost)/(Price - Unit Cost)
• Break-even Time Calculation: In order to get the expected time for break-even, the sales
forecast is superimposed on a typical S-shaped sales plot. The sales plot shows the familiar
product life cycle: introduction, growth, maturity, and decline. The plot also shows the breakeven point.
46) Explain the different components of a pro forma operating income statement.
Answer: Revenue: Revenue is the total amount of money a company makes selling its
product before any costs are subtracted. To calculate revenue, the number of units forecasted
to be sold is multiplied by the price per unit.
Cost of Goods Sold (COGS): Cost of goods sold (COGS) represents the direct costs incurred
in making the product. In some cases, COGS might be higher than the manufacturing unit
costs due to other direct costs, such as shipping. To calculate COGS, the number of units
forecasted to be sold is multiplied by the cost per unit.
Gross Margin Amount: The gross margin amount represents the amount of money a company
makes before any expenses are subtracted. To calculate the gross margin amount, the full
absorption cost is subtracted from revenue. The full absorption cost is defined as the sum of
variable costs (direct labor and materials costs) as well as overhead costs allocated to that
product line. Alternatively, the term contribution margin, computed as revenue less variable
costs, is used.
Gross Margin Percentage: The gross margin percentage represents the contribution margin
divided by revenue. The gross margin of a company is compared with that of other similar
products in the industry and it can be determined if the company is higher or lower than the
industry average (higher is better). To calculate gross margin percentage, the following
formula is used:
Gross Margin Percentage = (Revenue - Cost of Goods Sold)/Revenue
Expenses, Total: The total expenses represent all the miscellaneous, nonproduction costs
associated with making the product. It includes expenses such as rent, depreciation,
insurance, and advertising.
Operating Income: The total expenses are subtracted from the gross margin amount to obtain
the operating income.
47) Discuss the two common capital budgeting techniques.
Answer: The two common capital budgeting techniques are net present value and internal rate
of return.
Net present value (NPV) analysis incorporates the time value of money (acknowledging that
a dollar now is worth more than a dollar later) by discounting the cash flows from the
proposed project to their present value using the discount rate.
The discount rate (the rate by which the cash flows are reduced to reflect the time value of
money) is generally the rate of return that the organization could earn on an investment with
similar financial risk.
To calculate NPV, we sum up the discounted cash flows from each year of the proposed
project. NPVs greater than 0 mean that the proposed plan generates more discounted cash
flow than an investment with equivalent financial risk, so it is a wise use of capital. To
calculate NPV, we use the following formula:
NPV = [(Cash flow from year 0)/(1 + discount rate)t = 0] +
[(Cash flow from year 1)/(1 + discount rate)t = 1] + [remaining discounted cash flows]
The other popular capital budgeting technique is the internal rate of return (IRR) analysis,
which calculates the rate of return based on the plan's discounted cash flows and compares it
to the company's required rate of return (sometimes called the hurdle rate). Some companies
prefer the IRR technique to that of NPV, because IRR provides the actual expected rate of
return, whereas NPV only indicates a go/no-go decision of a single project, or the relative
attractiveness of multiple projects compared with their respective NPVs. To calculate the
IRR, we set NPV to zero (because the actual rate of return is the same as the "discount rate"
when NPV = 0), then solve for the rate of return.
48) What is a marketing budget? Explain social media and digital marketing expenses and
advertising expenses.
Answer: Budgets offer a mechanism for translating marketing plan goals (like widespread
exposure of a marketing message) to action, by allocating amounts that support those goals
(like spending on social media). Consequently, budgeting for marketing plan projects should
follow the goals and objectives of those marketing plans.
Advertising Expenses: Typical expenses include items such as creative development, media
placements (such as television, radio, or print), agency costs, and advertising to distribution
channels (for push-oriented campaigns). Advertising is the largest expense category for many
companies.
Social Media and Digital Marketing Expenses: Common expenses include items such as SEO
(search engine optimization expenses, often done by external contractors), SEM (search
engine marketing expenses, paid to Internet advertising organizations like Google for its
AdWords program), webinar hosting expenses (like those for WebEx), and advertising done
on websites and mobile devices. Depending on the organization's accounting standards, the
budget might also include labor for creation of content and monitoring of social networking
sites, blogs, videos, and online newsletters. This budget category is growing rapidly, with
studies finding some companies allocating over 20 percent of their budget toward it.
49) Write a note on marketing budget expenses arising from sales promotions, public
relations, events, direct marketing, and personal selling.
Answer: Sales Promotions Expenses: Normal expenses include the cost of free samples, coop ads, coupons, rebates, and contests.
Public Relations Expenses: Customary expenses include items such as press release wire fees
(such as those of BusinessWire), subscriptions to industry analyst reports and services, presskit materials, and press tours. Some organizations also include marketing research expenses
in this category.
Events and Experiences Expenses: Typical consumer market event expenses include items
such as the cost of developing, advertising, and holding an event created by the organization.
Alternatively, it can include the cost of sponsoring an external event, like a golf
championship. Business market event expenses generally include costs for industry trade
shows. Virtually every industry has its own trade show, and sponsoring the show, such as
staffing a booth there, can increase exposure within the company's target market.
Direct Marketing Expenses: Common expenses include items such as purchasing contact lists
to target individual prospects (such as fees from contact list provider InfoUSA, infousa.com),
email transmission fees based on the quantity of emails sent (such as expenses from email
delivery firm Constant Contact, constantcontact.com), printing and mailing expenses (for
direct mail campaigns), as well as the cost of the offer that compels targets to respond.
Personal Selling Expenses: Selling expenses will vary based on whether the sales force is
comprised of employees of the organization, or members of a contracted sales force.
Test Bank for Marketing Planning
Stephan Sorger
9780132544702
