In making a decision about whether to increase its advertising budget the firm management should not consider

Question

Quizplus · Accepted Answer

Interest payments on the firm's loan are not directly related to the decision of increasing the advertising budget. The decision should be based on the potential added revenue from increased sales compared to the cost of producing more goods for sale and the cost of the increased advertising. Therefore, option C should not be considered.

In Making a Decision About Whether to Increase Its Advertising