BUSN

Expense items that have undergone little or no processing and are used in the manufacture of end products are called:

raw materials

_____ is a strategy that focuses on forging long-term partnerships with customers.

Relationship marketing

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

How has the Sarbanes-Oxley Act affected accountants?

It has eliminated many nonauditing tasks they use to provide for their customers.

_____ is the division of markets into different groups

Market segmentation

_____ is the collection, recording, and analysis of data important in marketing and communicating that information to management.

Marketing research

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

Personal selling costs can be adjusted by controlling the size of the sales force.

_____ is the act of informing, persuading, and reminding the target market about a product.

Promotion

_____ are independent accountants who serve organizations and individuals on a fee basis.

Public accountants

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

Ratio analysis

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

Wholesalers

Wultec International Inc., a Canada-based manufacturer, produces end-of-line packaging equipment, such as wrapping machinery, which is used in warehouses to cover pallets and protect their contents. Wultec end-of-line packaging equipment, when purchased for warehouse use, is an example of which type of business product?

accessory

Amounts owed to the firm by customers who bought goods and services on credit are called:

accounts receivable

Accounting provides a framework for looking at:

all of the above

Which of the following is an example of an advertising medium?

all of the above

Which of the following is a type of sales promotion?

all of these

Things of value owned by a firm are called its:

assets

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

A company that specializes in planning parties for children had $7,000 worth of inventory on January 1, 2018, and it had $5,000 worth of inventory on December 31, 2018. If its cost of goods sold for that period was $3,000, and its net profit was $9,000, what was its inventory to turnover ratio?

2 times

_____ ratios reflect the speed with which resources are converted to cash or sales.

Activity

_____ is any paid form of nonpersonal presentation by an identified sponsor.

Advertising

Which of the following statements about the accounting profession is true?

All of the above statement about the accounting profession are true.

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Bookkeeping

_____ has a group think of as many ways as possible to generate new-product ideas, vary a product, or solve a problem.

Brainstorming

_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations.

Debt

One never knows the connections that can be made when singles get together to do the laundry. As such, Whirlpool is taking its laundry appliances to the social scene by hosting Spin Cycle events that will give singles a chance to meet, mingle and have some good clean fun while playing laundry-themed games that can earn them Whirlpool prizes. Whirlpool is using these events as part of its _____ strategy.

promotion

The first step in the selling process is to:

prospect and qualifying

The Financial Accounting Standards Board (FASB) is currently:

pushing for major changes in GAAP

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

The dollar amount of sales plus any other income received from sources like interest and dividends is called:

revenues

The first step in the new products planning process is:

setting new-product goals

Products that are bought after comparing price, suitability, quality, and style are called _____ products.

shopping

A strategy of charging a high introductory price for a new product that invites eventual competition is called price:

skimming

What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20 cases of Ecco brand golfing shoes?"

closing the sale RATIONALE: See Exhibit 12.5 Steps in Making a Successful Sale

Compressor pumps installed in General Electric refrigerators would be considered:

component parts

A relatively inexpensive item that requires very little shopping effort is called a _____ product.

convenience

In manufacturing, all costs directly related to production including raw materials, labor, and factory overhead are classified as:

cost of goods sold

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:

create awareness RATIONALE: The goal of the frequency programs is to create loyal customers.

Which of the following is NOT an element of the promotional mix?

distribution

The _____ is a series of marketing entities through which goods and services pass on their way from producers to end-users

distribution channel

Computers can enhance accounting by:

doing all of these

On an income statement, operating expenses that cannot be linked to cost of goods sold or to sales are called _____ expenses.

general and administrative

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:

generally accepted accounting principles

U.S. Carburetion Inc. makes natural gas and gasoline powered generators. Assume the company had $100,000 in net sales for the week of September 11th. Cost of goods sold was $42,000. On an income statement, the remaining $58,000 would be classified as:

gross profit

Another term for owners' equity is:

net worth

With a _____ policy, a company offers new products at a low price in the hope of achieving a large sales volume.

penetration pricing

In the newspaper comics, Cathy is often seen talking to a department store clerk who is trying to persuade her that she needs to buy a new wardrobe. The clerk is engaged in:

personal selling

When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of:

price skimming

A pharmaceutical company with headquarters in India sells fluconazole, the generic version of Pfizer's anti-fungal drug Diflucan internationally for significantly less money than many U.S. generic drug manufacturers. The generic drugs industry in this country needs to rethink its _____ strategy to stay competitive.

pricing

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies.

product and promotion

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.

debt-to-equity RATIONALE: The debt-to-equity ratio measures the relationship between the amount of debt financing and the amount of equity financing.

Within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

The Accent Modification Center helps upwardly mobile international professionals smooth accents that may be holding them back from getting that next promotion. The business's target market is from the growing Asian population in Virginia. The center has developed a(n):

niche competitive advantage

Current assets, such as marketable securities and inventory, usually are expected to be turned into cash within:

one year

Fixed assets are property and buildings that a firm expects to use for more than:

one year

Radial tires installed on four-wheel drive vehicles are examples of:

component parts

For which of the following assets would a wholesale company use depreciation?

its warehouses

The Art Institute, a school for training artists to be financially self-sufficient, has a debt-to-equity ratio of 120 percent. This means the school has:

more debt than equity

By dividing cost of goods sold by the average inventory to measure the speed with which inventory moves through the firm and is turned into sales, the _____ ratio is calculated.

inventory turnover

_____ is the process of separating, identifying, and evaluating the layers of a market to design a marketing mix.

Market segmentation

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies.

Brokers

_____ is arrived at by subtracting current liabilities from current assets.

Net working capital

_____ is the number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks.

Reach

A recent seminar on attracting retail customers addressed the following fact: "Time is on the mind of the consumer. If you ask anybody you know, 'Would you rather have an extra day off or an extra day's pay?' people in America would take the time off 2-to-1." This topic indicates that these retailers supported a need for more _____ segmentation to reach the time-poor consumer.

benefit

The 7-member Dover family recently purchased a mini-van because the ads for a Plymouth Horizon showed that it could haul 8 or more people and still have room for books, bags, and sports equipment. Plymouth Horizon was using what form of segmentation with its advertising?

benefit

The chain of manufacturer, agent, wholesaler, and retailer through which items like x-ray machines, dental equipment, and safety goggles flow is called a(n) ______ channel.

promotional RATIONALE: The chain of manufacturer, agent, wholesaler, and retailer through which items like x-ray machines, dental equipment, and safety goggles flow is called a distribution channel.

Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?

increase the amount and frequency of use

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity?

net working capital

The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its beer at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

penetration pricing

Which of the following is an example of an individual factor that influences the consumer decision-making process?

personality

Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes. By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers. The supermarket chain's emphasis on maintaining its cost competitive advantage means the company's top management is often concentrating on its _____ strategy.

pricing

In new-product development, _____ is the stage at which products that do not meet new-product goals are rejected.

screening

Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to a find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a _____ product.

specialty

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:

the sale of land adjacent to the manufacturer's administrative office building

Which of the following is an expense item for an independent bookstore?

order forms

Jay Pontiac, an auto dealer, wanted to develop a service reminder program in the form of brochures that could be sent to individual customers. On the cover of each individualized brochure was an image of the customer's vehicle, the customer's name, and vehicle model name. Inside was the vehicle's estimated current mileage at the time of the mailing. Recommended services for that vehicle based on the estimated mileage were also included. Detailed service information was provided in the service history section of the brochure. On the back of the brochure were four coupons directly related to the service recommendations. Jay Pontiac used:

one-to-one marketing