Practice Test Geeks(MAC) Marketing Analytics Certification Practice Test
← All MAC Flashcard Decks

Financial Management & Budgeting Flashcards

7 cards from real MAC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management & Budgeting flashcards as text

  1. A company's marketing efficiency ratio (MER) is calculated as total revenue divided by total marketing spend. An MER of 6 means:

    Answer: Every dollar spent on marketing generates $6 in revenue

    MER of 6 means $6 of revenue is generated for every $1 of marketing investment across all channels.

  2. Which approach to CLV calculation accounts for the time value of money?

    Answer: Discounted CLV using a net present value formula

    Discounted CLV applies a discount rate to future cash flows, reflecting that future revenue is worth less than current revenue.

  3. An analyst notices that email marketing consistently shows a high last-click ROI but contributes little when using data-driven attribution. This discrepancy most likely means email is:

    Answer: Capturing credit for conversions driven by earlier touchpoints

    Last-click over-credits email for closing conversions that were actually initiated by upstream channels like paid search or display.

  4. When setting a marketing budget using the 'objective-and-task' method, the correct sequence of steps is:

    Answer: Define objectives → Determine tasks → Estimate costs

    Objective-and-task budgeting starts with defining goals, then identifies required activities, and finally sums their costs to arrive at the budget.

  5. A brand's gross margin is 60% and its marketing-to-sales ratio target is 10%. If projected sales are $2,000,000, what is the target marketing budget?

    Answer: $200,000

    Marketing budget = Sales × Marketing-to-Sales Ratio = $2,000,000 × 10% = $200,000.

  6. In a marketing budget review, 'sensitivity analysis' is used to:

    Answer: Test how budget outcomes change when key input assumptions vary

    Sensitivity analysis adjusts one or more input variables (e.g., conversion rate, CPC) to measure their effect on budget outcomes and ROI.

  7. A marketing analytics leader wants to demonstrate marketing's financial accountability to the CFO. The most compelling approach is to:

    Answer: Link marketing KPIs directly to revenue, margin, and CAC payback period

    CFOs respond to financial metrics; connecting marketing activity to revenue growth, profit margin, and payback period demonstrates business impact.