Marketing responsibility for sales-activity variances, Accounting Basics

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Marketing responsibility for sales-activity variances

Question: Marketing Responsibility for Sales-Activity Variances Suppose a company budgeted an operating profit of $100 on sales of $1,000. Actual sales were $900. The marketing department claimed that because sales were down 10%, it was responsible for only 10% of $100 or $10 of any drop in profit. Any further shortfall must be someone else's responsibility. Comment on this claim.

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Accounting Basics: Marketing responsibility for sales-activity variances

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