Which of the following is the best rationale for the recommended method of accounting for advertising cost?
A)It is difficult to measure the benefit.
B)Advertising is very expensive.
C)GAAP provides no guidance for making this decision.
D)The marketing manager is in the best position to determine in which year the advertising expense should be recognized.

Question

Quizplus · Accepted Answer

The best rationale for the recommended method of accounting for advertising cost is that it is difficult to measure the benefit. This difficulty in directly linking advertising costs to specific revenue makes immediate expensing the most practical and conservative approach.

Which of the Following Is the Best Rationale for the Recommended