Question 1

In a marketing cost analysis, ledger expenses:

Accepted Answer

Ledger expenses are expense categories that are taken directly from the company's regular accounting system. They represent the actual costs recorded in the financial records of the company.

Question 2

In marketing cost analysis, sales force salaries, office supplies, media space, property taxes, and travel expenses are called:

Accepted Answer

The answer of In marketing cost analysis, sales force salaries,...

Question 3

Denman Tire Company is a manufacturer of tires for specialty tire niches that the bigger manufacturers ignore. Which of the following is an example of a ledger-account expense that could be used for its marketing cost analysis?

Accepted Answer

All the options listed (management salaries, freight charges, commissions paid to its sales force, and computer supplies) can be considered as part of the marketing cost analysis for a company like Denman Tire Company. Management salaries can include those of marketing managers, freight charges can be related to the distribution of marketing materials or products for promotional purposes, commissions to the sales force are direct marketing expenses, and computer supplies can be used in the creation of marketing materials or in digital marketing efforts.

Question 4

GDS Seating Inc. makes seats for football, basketball, and soccer stadiums throughout the world. Which of the following is an example of a ledger account expense that could be used for its marketing cost analysis?

Accepted Answer

The answer of GDS Seating Inc. makes seats for football,...

Question 5

Which of the following is an example of an activity cost classification and not an example of an object-of-expenditure category found in accounting ledgers?

Accepted Answer

The answer of Which of the following is an example...

Question 6

The most beneficial type of marketing cost analysis is the study of:

Accepted Answer

The most beneficial type of marketing cost analysis focuses on the expenses and profitability of specific components of a product assortment or total market. This allows businesses to understand which products or market segments are most profitable and adjust their strategies accordingly.

Question 7

Shiseido is a Japanese manufacturer of cosmetics and toiletries. The company is concerned because its prestige toiletries brand in Japan is experiencing declining sales in spite of an increase in its promotional budget. Through the combining of a market-share analysis with a marketing cost study, Shiseido can:

Accepted Answer

A market-share analysis combined with a marketing cost study will help Shiseido understand the impact of declining sales and increased promotional spending on its overall marketing program, allowing for a comprehensive assessment of the situation.

Question 8

A manufacturer of tools used by farriers to shoe horses may choose not to perform a marketing cost analysis if it:

Accepted Answer

A marketing cost analysis can be resource-intensive, requiring both financial and human resources. If a company is cash poor and short of labor, it might opt not to undertake such an analysis due to the immediate costs and manpower required, even though it could potentially benefit from the insights gained.

Question 9

According to the text, into what two categories can operating expenses be divided?

Accepted Answer

Operating expenses can be divided into direct and indirect expenses. Direct expenses are directly tied to the production of goods or services, while indirect expenses are not directly linked to production but are necessary for the overall operation of the business.

Question 10

Direct costs used in marketing cost analysis are also called:

Accepted Answer

Direct costs in marketing cost analysis are referred to as separable expenses because they can be directly attributed to a specific product, service, or marketing activity, unlike overhead or common costs which are shared across products or services.

Question 11

Indirect costs used in marketing cost analysis are also called:

Accepted Answer

Indirect costs in marketing cost analysis are often referred to as overhead, which are expenses not directly tied to a specific product or service.

Question 12

Which of the following is the best example of an indirect fixed cost for a textbook publisher?

Accepted Answer

The salary of the publisher's vice-president of marketing is an indirect fixed cost because it does not directly vary with the number of textbooks published or sold, and it is not directly attributable to the production or sale of a specific book.

Question 13

Which of the following is an example of a direct cost for a company like Kellogg's that produces several different kinds of cereal?

Accepted Answer

Direct costs are those that can be directly attributed to the production of a specific product. The series of magazine advertisements for Kellogg's Special K brand cereals (C) is a direct cost because it is a marketing expense directly associated with promoting a specific product line.

Question 14

GDS Seating Inc. makes seats for football, basketball, and soccer stadiums throughout the world. Which of the following is an example of a direct cost for this manufacturer?

Accepted Answer

Direct costs are those that can be directly attributed to the production of a specific product or service. Direct mail advertising for the company's platform chairs with 1-inch thick foam cushioning is a direct cost because it is directly related to promoting a specific product that the company manufactures.

Question 15

Shiseido is a Japanese manufacturer of cosmetics and toiletries. Sales in Japan for Shiseido's prestige brand of toiletries in Japan have declined. In terms of how costs are allocated, all of the promotional expenses for the prestige brand would be _____ costs.

Accepted Answer

Promotional expenses for a specific brand, like Shiseido's prestige brand, are considered direct costs because they can be directly attributed to that particular brand.

Question 16

The salary of the employees who conduct a sales volume analysis and a marketing cost analysis would be example of _____ costs.

Accepted Answer

The salary of employees conducting analyses is considered an indirect cost because it is not directly tied to a specific product or service but rather supports overall business operations.

Question 17

Most of the problems in cost allocation arise when dealing with _____ costs.

Accepted Answer

Most problems in cost allocation arise with indirect costs because they cannot be directly traced to a single product or cost object, making the allocation process more complex and subjective.

Question 18

GDS Seating Inc. makes seats for football, basketball, and soccer stadiums throughout the world. Which of the following is an example of an indirect cost for this manufacturer?

Accepted Answer

Company-wide participation in a trade show is an example of an indirect cost because it is not directly attributable to the production of a specific product or service but is necessary for the overall operation of the company.

Question 19

Oscar Mayer Foodservice sells to restaurants, hospitals, penitentiaries, and anywhere large groups of people need to be fed. Each sales person who works for Oscar Mayer Foodservice is assigned to one of six territories in the sales region. When analyzing marketing costs by sales territory, which of the following is an indirect cost?

Accepted Answer

The salary of the CEO of Oscar Mayer Foodservice is an indirect cost because it is not directly attributable to any specific sales territory but is a general cost that supports the entire operation.

Question 20

As part of a marketing cost analysis, the activities of order filling and shipping are _____ costs.

Accepted Answer

Order filling and shipping costs typically vary with the volume of orders processed, making them largely variable costs. These costs increase as the number of orders increases and decrease as the number of orders decreases.

Quiz 21: Marketing Implementation and Evaluation