In terms of profitability,investing in advertising can be justified only if the incremental revenue generated from the advertising effort exceeds the _____.
A) production expense
B) operational expense
C) discretionary expense
D) advertising expense
E) commission expense

Question

Quizplus · Accepted Answer

Investing in advertising can only be justified if the incremental revenue generated from the advertising effort exceeds the advertising expense. This means that the revenue generated from the advertising should cover the cost of the advertising itself in order to be profitable.

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