In terms of profitability,investing in advertising can be justified only if the incremental revenue generated from the advertising effort exceeds the increase in advertising expense.

Question

Quizplus · Accepted Answer

Advertising is considered profitable only when the additional revenue generated from the advertisement exceeds the increase in expenses. If the expenses for advertising are higher than the generated revenue, then it is not profitable. Therefore, the statement is true.

In Terms of Profitability,investing in Advertising Can Be Justified Only