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Why is advertising considered an investment not an expenditure?
Wiki User
∙ 12y ago
Though advertisement is shown in the profit and loss a/c and not on the balance sheet, it is an investment from the business point of view because it impacts the business for a long time. We must not forget about the consumer's brand loyalty -- once a consumer becomes brand loyal, he can remain loyal for a long time. But on the other hand, expenditures cannot attract consumers.
A characteristic of investments is that they add something to the value of the product. But most expendituresare unwanted, and every firm wants to reduce them. Overall, since advertisement can help a business to increase product demand, it can be an investment, not merely an expenditure.
Wiki User
∙ 12y ago
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What is the difference between investment and expenditure?
An investment you expect a return, with the other, you don't.
What is another word for expenditure?
outgo, expense, investment.
What does investment affect in the keynesian model?
Government expenditure.
What is national expenditure?
It is the total expenditure for all kinds within the economy that is public and private. The national expenditure =Consumption+Investment+government purchases.
What are the factor affecting aggregate Demand?
Consumption, Investment, Government Expenditure and Net Exports
What is expenditure advertising?
an action of spending funds on advertising
What is the difference between investment and expenditure?
An investment you expect a return, with the other, you don't.
What is another word for expenditure?
outgo, expense, investment.
What does investment affect in the keynesian model?
Government expenditure.
What is national expenditure?
It is the total expenditure for all kinds within the economy that is public and private. The national expenditure =Consumption+Investment+government purchases.
Is Advertising is wasteful expenditure?
Advertising on the whole is not wasteful, it brings in business. However, not all advertising campaigns are equally successful, so in some cases advertising is wasteful.
How much is spent on advertising per year in the UK?
UK advertising expenditure reached £19.4 billion in 2007
What has the author Rodney Silverman written?
Rodney Silverman has written: 'Advertising expenditure, 1952' -- subject(s): Advertising
Is saving an injection into and investment a leakage from the income expenditure stream?
Savings are a leakage from the income expenditure stream because they drain on the economy
How do you determine the optimal level of advertising?
the optimal level of advertising expenditure for the firm is determined where the marginal revenue increase in costs of advertising are equal to the marginal increase in revenue
What are the factor affecting aggregate Demand?
Consumption, Investment, Government Expenditure and Net Exports
Which of these BEST represents capital investment for a company?
the answer is advertising
