Answer:
In the competitive-parity method of setting an advertising budget, the budget is set based on <u>competitors’ advertising activities and costs for setting advertising budget.</u>
Explanation:
In competitive Parity Method,competition is one of the powerful factors affecting marketing strategy and performance.
This is evident during board meeting presentation by marketing and advertising strategists. The give the information gathered from research about other competitive firms budget because they know that competitive factor is given more importance in deciding advertising budget.
For instance, if their close competitors spend 4.5% of net sales on their advertising budget, the company will plan to spend, more or less.
That is the information that the budgeting committee enters on the budgeting plan for the period in view.
Here, there is a general belief that “competitors or leaders are always right.” thereby making decisions about budgeting competition driven.
This method considers the competitors’ advertising activities and costs for setting advertising budget. The advertising budget is fixed on the basis of advertising strategy adopted by the competitors.
Answer:
1. Accounts Payable - Debit reduces the balance, credit increases it. It normally has a credit balance
2. Advertising Expense - Debit increase it and credit reduces it. Itb normally has a debit balance
3. Service Revenue - Debit reduces the balance, credit increases it. It normally has a credit balance
4. Accounts Receivable - Debit increase it and credit reduces it. Itb normally has a debit balance
5. Common Stock - Debit reduces the balance, credit increases it. It normally has a credit balance
6. Dividends - Debit increase it and credit reduces it. Itb normally has a debit balance
Explanation:
Assets and expenses normally have debit balances and are items in the balance sheet and income statement respectively. Revenue and liabilities normally have credit balances and are elements of the income statements and balance sheet respectively.
<span>If local shell gasoline stations look at bp stations' prices as the primary method of determining its own prices, shell is using</span> competition-based pricing.
In this we considers costs have not much value and consider to be less important than competitor's prices, means competitor's price is important.
Answer:
Internal Control is designed to ensure all of the items described in the answer.
Explanation:
Internal control refers to the control measures adopted by an entity so as to ensure compliance with legal framework, check frauds and errors and for reliable financial reporting.
Compliance procedures are the processes designed to check whether internal controls exist in an organization and if they do, whether such controls are operating effectively.
For e.g biometric authentication with regard to attendance keeps a check on the number of employees actually working during a period and eliminates the possibility of dummy names in the attendance records. This is an example of internal control i.e control measures created by organization itself.
