The retailer allocates the budget to areas that will yield the greatest return. This approach for allocating a budget is referred to as the
A) high-margin principle.
B) high-assay principle.
C) contribution principle.
D) attraction principle.
E) break-even principle.

Question

Quizplus · Accepted Answer

Allocation decisions, like budget-setting decisions, should use the principles of marginal analysis. The retailer should allocate the budget to areas that will yield the greatest returns. This approach is referred to as the high-assay principle.

The Retailer Allocates the Budget to Areas That Will Yield