The key ratio to watch in annual-plan control to make sure that the company is not overspending to achieve sales goals is the marketing expense-to-sales ratio.

Question

Quizplus · Accepted Answer

The marketing expense-to-sales ratio is a key ratio that helps to measure the efficiency of marketing spend and ensure that the company is not overspending to achieve sales goals. This ratio is calculated by dividing the total marketing expenses by total sales revenue. A higher ratio indicates that the company is spending more on marketing to achieve its sales goals, while a lower ratio suggests that the company is achieving its sales targets more efficiently. By monitoring this ratio, companies can make better decisions related to their marketing spend and achieve better financial control.

The Key Ratio to Watch in Annual-Plan Control to Make