Chapter 12 (Cost Analysis)

expenses

____ reflect the other costs incurred in operating a business, such as advertising

indirect cost

a ______ is a shared cost tied to several functions or products

none of the above

a company that manufactures lighting fixtures wants to do a marketing cost analysis based on customer (home owner, commercial, and institutional) which of the following is the best example of a general expense?

a brochure describing the features of its livestock

a company that manufactures livestock trailers dog houses, portable utility buildings and carport covers wants to do a marketing cost analysis. which of the following is the best example of a direct cost

false

accounting based costing (abc) identifies the cause and effect relationship between costs and desired organizational outcomes

costs are allocated

alex is struggling with his company's new financial accounting system. he knows the key is to understand how _____ so that true profitability can be determined

true

all sales are achieved at some cost

true

an argument that supports the contribution margin approach is the fact that most marketing phenomena are highly interrelated

false

contribution margin advocates argue that costs should be arbitrarily allocated

true

critical o an assessment of a customers lifetime value is an analysis of the costs associated with doing business with that customer

true

delivery cost for plastic polymer film to shrink wrap yo-yos is an example of a direct cost

products

if they do profitability analysis, companies are most likely to do it for

false

it is relatively simple to conduct a cost or profitability analysis

marketing costs divided by sales

jerry wants to measure marketing productivity. he will focus on

false

marketing costs analysis cannot help managers identify opportunities for increasing the effectiveness of marketing expenditures

true

one reason marketing managers have neglected consideration of costs is that accounting systems were designed to report aggregate effects of the firms operations

true

one reason that a majority of firms do not use the four bases of profitability (products, territories, salespeople and customers) is that most accounting systems are not designed to meet the needs of the marketing manager

false

the cost of renting a warehouse to store component parts for making various sizes of electric generators is an example of a general expense

cost

the term ______ is often restricted to the materials, labor, power, rent and other items used in making the product

lifetime value of the customer

tryoneis attempting to measure the long term value or profitability of his customers. tyrone is measuring

management

which of the following is not one the bases for profitability analysis

marketing cost analysis focuses on the results achieved to determine if the returns justify the expenditures

which of the following statements about marketing cost analysis is true?

results achieved; incurred

while sales analysis focus on ______ , cost analysis looks at the cost ______ in producing those results

true

while sales analysis focuses on the results achieved, cost analysis looks at the costs incurred in producing those results and whether the returns justify the expenditures

the potential for new business

wilton is assessing the lifetime value of his customers. as part of his analysis he will most likely assess