MKTG 470 Ch 12
R&G: What would be the net profit/loss for the institutional division?
(19,000)
Calculate the contribution for the homeowners division
30,000
Which of the following statements about how a manufacturer categorizes its cots and expenses is true?
A salesperson's salary would be a direct cost for his or her territory, but an indirect cost for the product sold
Marketing cost analysis can be used by sales managers to...
All of the above
The essence of marketing cost analysis is to ______ cost data.
All of the above
In the contribution margin approach, any excess revenues over costs...
Contributes to common costs and profits
ROAM (return on assets managed) =
Contribution as a % of sales times the asset turnover rate
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.
Costs are allocated
A manager is using a full-cost approach, then allocating fixed costs on the basis of sales volume as a way of analyzing marketing costs. This method could...
Create an environment where low-volume customers appear more profitable than they actually are
R&G: What would an advocate of the full-cost approach to marketing cost analysis do with this info?
Eliminate the division that sells to homeowners
_______ reflect the other costs incurred in operating a business, not directly related to making the product
Expenses
A company that manufactures specialized database-gathering software for retailers, physicians, lawyers and anyone else that needs a database wants to do a marketing cost analysis. If it uses product as its object of measurement, then a particular sales rep's compensation is an example of a(n)...
Indirect cost and general expense
A(n) ______ is a shared cost tied to several functions or products
Indirect costs
Tyrone is attempting to measure the long-term value or profitability of his customers. Tyrone is measuring...
Lifetime value of the customer
The reason for the low profitability of the Model 610A conveyor appears to be...
Low gross margin
The most likely explanation for Sims' lower CM is his...
Low sales of Model 510
Which of the following statements about marketing cost analysis is true?
Marketing cost analysis focuses on the results achieved to determine if the returns justify the expenditures
EMI, a manufacturer of aluminum conveyor belts, allocates costs such as salaries, advertising, warehouse rent, office supplies, and travel expenses. EMI uses the ______ approach to marketing cost analysis.
Net profit
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?
None of the above
Based on marketing cost analysis, it is obvious that _______ should be terminated because he produced the lowest CM
None of the above
It is obvious that _____ should be deleted from the product line.
None of the above
When assessing segment performance, indirect costs should...
Not be allocated
How does Angellini Inc allocate its sales force commissions?
On the basis of conveyors sold
Which of the following is the best example of a functional account?
Otder processing
The warehousing expenses allocated to each salesperson would include...
Packaging costs for each product sold
If they do profitability analysis, companies are most likely to do it for...
Products
Sales managers are typically LEAST concerned with the profitability of...
Products
Companies are more likely to conduct _____ analysis than profitability analysis.
Sales
The first step in conducting a cost analysis is to...
Specify to purpose for which the study is being done
All of the following are disadvantages associated with a marketing cost analysis EXCEPT...
The lack of tangible profit as a result of such an analysis
The real benefit of a marketing cost analysis is...
The opportunity is provides managers to isolate segments of the business that are most profitable as a those that generate losses