Annual-plan control requires making sure the company isn't overspending to achieve sales goals. The key ratio to watch is ________.
A) stock turnover
B) gross margin
C) return on capital
D) cash flow return on investment
E) marketing expense-to-sales

Question

Quizplus · Accepted Answer

The key ratio to watch in annual-plan control is marketing expense-to-sales ratio, which indicates whether the company is spending too much on marketing to achieve its sales goals. A high ratio may suggest overspending, while a low ratio may indicate ineffective marketing or missed opportunities.

Annual-Plan Control Requires Making Sure the Company Isn't Overspending to Achieve