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ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions

A retailer's marketing manager wants to run a large promotional discount campaign. Which information would the accounting function most usefully provide to help evaluate the campaign?

The accounting function should supply the expected contribution per unit and the break-even sales volume at the discounted price. This shows whether extra sales would cover the lost margin and campaign costs, which an organisation chart or competitor slogans cannot do.

  1. AThe expected contribution per unit and the break-even sales volume at the reduced priceCorrect
  2. BThe organisation chart showing reporting lines in the sales team
  3. CA list of competitors' advertising slogans

Explanation

Accounting supports marketing decisions with financial analysis such as unit contribution and break-even volumes at the discounted price. An organisation chart and competitor slogans are not financial information produced by accounting, and neither shows whether the campaign would be profitable.

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