Answer: difficulty of accurately assessing the advertising costs necessary to accomplish the goals
Explanation: Objective and Task control method; objective task control method is a system used by companies to allocates certain amount of money to to be used for it's marketing budget based on some objectives, rather than choosing a random amount or deciding it's marketing budget based on sales revenues or projections alone. This means advertising budget is based on set objectives. The challenge faced is their inability to correctly determine the cost necessary to accomplish the set objectives or goals.
Answer: See explanation
Explanation:
The year-end adjusting entry to record the cost side of sales returns and allowances will be:
Dr Inventory Return estimated $3200
Cr Cost of goods sold $3200
(To record expected coat of returns)
Note that the above calculation was done as:
= $64,000 × 5%
= $64,000 × 0.05
= $3200
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