Question

Which of the below condition is true about marketing expenditure?
(a) Marketing liability is an expenditure
(b) Impact of marketing on one region depends on other region expense
(c) Decreasing marketing expenditure will not affect cash flow
(d) Marketing plan can only change one per day

Answer 1

Which of the below condition is true about marketing expenditure?
(a) Marketing liability is an expenditure

The above condition (a) is true as its a liability that has to be paid in future and is an expense.

All the below conditions are not true:
(b) Impact of marketing on one region depends on other region expense (not true all the time)
(c) Decreasing marketing expenditure will not affect cash flow (false as expense usually always affects cashflow unless its paid as non-cash consideration which is rare)
(d) Marketing plan can only change one per day (Plans can change as many times as required)