Title: Relate the financial statement to the budgeting process.
Course: Marketing Management (12166) > Section: Budgeting Marketing Efforts

Relation should include relating the definition and purpose of each element in a financial statement. It should also explain the significance of each of the following:

- Total assets are greater than total liabilities.
- Gross profit is positive vs. negative.
- Net profit is positive vs. negative.
- Currency transfer rates for multinational companies
- Operating expenses
- Depreciation

Process/Skill Questions:

- How might the interpretation of a financial statement affect marketing mix decisions?
- How might the interpretation of a financial statement affect product and/or service mix decisions?
- How are financial statements used in the budgeting process?
- How do financial statements help a company prepare tax returns?
- How are financial statements used by marketing managers?
- Who within an organization needs access to financial statements and why?