Marketing Cost Variance refers to the difference between the budgeted marketing costs and the actual marketing costs incurred during a specific period. This metric helps evaluate the efficiency of marketing expenditure and can be either favorable or unfavorable.
Return on investment equal to the original marketing expenditure; also known as payback. When a company recovers its investment plus the expected built-in return from launching or reintroducing a new product or service, it has realized a profit from its original capital outlay. A company's payout represents the minimum amount of dollar sales that must be generated to offset the cost of an advertising program.
