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Management Studies

Q. What is Residual or Affordable Method?

Affordable Method: - This method is as well known as all you can afford, Residual Method, Available-fund-Approach. As the company doesn't spend more than what it can afford there is an element of financial decision as well as company remain away from the war. These methods have some weaknesses which are as follows

1) Lack of Financial Resources

2) Unscientific

3) Ignores Role of Advertising

4) Lack of Stability

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Marketing Management, Management Studies

Category:- Marketing Management
Reference No.:- M9574976

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