Question 1

The simplest and least expensive marketing cost analysis is a study of the object of expenditure costs as they appear in the firm's profit and loss statement.

Accepted Answer

This method is straightforward because it involves analyzing costs directly from the profit and loss statement, which is a readily available financial document, making it a simple and cost-effective approach for marketing cost analysis.

Question 2

An analysis of marketing costs gives executives more information than they can get from an analysis of ledger accounts alone.

Accepted Answer

An analysis of marketing costs provides insights into the effectiveness and efficiency of marketing strategies, customer acquisition costs, and return on investment, which are not readily apparent from general ledger accounts that primarily record historical financial transactions.

Question 3

Indirect costs are also called inseparable expenses.

Accepted Answer

Indirect costs are expenses that cannot be directly attributed to a specific cost object, such as a product or service. They are also known as inseparable expenses because they cannot be separated from the production process.

Question 4

The commission and travel expenses for a sales person in the health care division of 3M are an example of an indirect cost incurred by that division.

Accepted Answer

Commission and travel expenses for a salesperson are considered direct costs because they can be directly attributed to the activities of the health care division.

Question 5

Proponents of the full-cost approach to marketing cost analysis contend the contribution-margin approach is the 80-20 principle in action.

Accepted Answer

The full-cost approach to marketing cost analysis and the contribution-margin approach represent different methodologies for analyzing costs and profitability. The 80-20 principle, or Pareto Principle, suggests that 80% of effects come from 20% of causes, which is a separate concept not directly equated with the contribution-margin approach.

Question 6

Unprofitable and low-volume products should be immediately deleted from the product line as soon as they are discovered.

Accepted Answer

While unprofitable and low-volume products might initially seem like candidates for removal, it's important to analyze their overall impact on the product mix, potential for improvement, and their role in attracting customers or supporting other profitable products before making a decision to delete them.

Question 7

By combining a sales volume analysis with a marketing cost analysis, management can determine if the organization is experiencing a small-order problem.

Accepted Answer

Combining sales volume analysis with marketing cost analysis allows management to assess the profitability and efficiency of different order sizes, identifying if smaller orders are disproportionately increasing costs or reducing overall profitability, thus indicating a small-order problem.

Question 8

_____ is the operational stage--the stage during which an organization attempts to carry out its strategic  plan.

Accepted Answer

The answer of _____ is the operational stage--the stage during...

Question 9

Hewlett-Packard has a U.S. division that sells to U.S. businesses; a European division that sells to Europe, Africa, and the Middle East; and an Intercontinental division that sells to the rest of the world. Hewlett-Packard is using _____ _____ to organize its sales force.

Accepted Answer

The answer of Hewlett-Packard has a U.S. division that sells...

Question 10

A furniture manufacturer that has separate sales forces calling on retailers, interior design firms, and furniture wholesalers is using _____ _____ to organize its sales force.

Accepted Answer

The answer of A furniture manufacturer that has separate sales...

Question 11

Wendy bought a new $50 blouse without trying it on at the store. When she tried to wear it, she saw that the front of the blouse puckered because the buttons and buttonholes were not aligned. As a result of an _____ warranty, Bridgette could rightfully expect the store to refund her money or give her another  blouse.

Accepted Answer

The answer of Wendy bought a new $50 blouse without...

Question 12

Due to the legal action called _____ _____, Wenlock can sue the manufacturer of an incorrectly wired  lamp that caused five hundred dollars worth of fire damage to his living room.

Accepted Answer

The answer of Due to the legal action called _____...

Question 13

The _____ _____ is a comprehensive review and evaluation of the marketing function in an organization-  -its philosophy, environment, goals, strategies, organizational structure, human and financial resources, and performance.

Accepted Answer

The answer of The _____ _____ is a comprehensive review...

Question 14

In most firms, a large proportion of the total orders, customers, territories, or products account for only a small share of the company's total sales or profits. This relationship is referred to as the _____ _____.

Accepted Answer

The answer of In most firms, a large proportion of...

Question 15

A _____ _____ analysis is a detailed study of the net sales section of a company's profit and loss  statement.

Accepted Answer

The answer of A _____ _____ analysis is a detailed...

Question 16

_____ expenses include property tax, license fees, commissions, and media space.

Accepted Answer

The answer of _____ expenses include property tax, license fees,...

Question 17

_____ costs include order processing, order carrying, and advertising, as well as marketing  administration.

Accepted Answer

The answer of _____ costs include order processing, order carrying,...

Question 18

_____ costs are also called separable expenses.

Accepted Answer

The answer of _____ costs are also called separable expenses....

Question 19

In the _____ approach to marketing cost analysis, only direct expenses are allocated to each marketing  unit being analyzed.

Accepted Answer

The answer of In the _____ approach to marketing cost...

Question 20

By using the _____ approach to marketing cost analysis, management allocates all costs to determine the  net profits of each unit being analyzed.

Accepted Answer

The answer of By using the _____ approach to marketing...

Quiz 21: Marketing Implementation and Evaluation

The simplest and least expensive marketing cost analysis is a study of the object of expenditure costs as they appear in the firm's profit and loss statement.

An analysis of marketing costs gives executives more information than they can get from an analysis of ledger accounts alone.

Indirect costs are also called inseparable expenses.

The commission and travel expenses for a sales person in the health care division of 3M are an example of an indirect cost incurred by that division.

Proponents of the full-cost approach to marketing cost analysis contend the contribution-margin approach is the 80-20 principle in action.

Unprofitable and low-volume products should be immediately deleted from the product line as soon as they are discovered.

By combining a sales volume analysis with a marketing cost analysis, management can determine if the organization is experiencing a small-order problem.

_____ is the operational stage--the stage during which an organization attempts to carry out its strategic plan.

Hewlett-Packard has a U.S. division that sells to U.S. businesses; a European division that sells to Europe, Africa, and the Middle East; and an Intercontinental division that sells to the rest of the world. Hewlett-Packard is using _ _ to organize its sales force.

A furniture manufacturer that has separate sales forces calling on retailers, interior design firms, and furniture wholesalers is using _ _ to organize its sales force.

Due to the legal action called _ _, Wenlock can sue the manufacturer of an incorrectly wired lamp that caused five hundred dollars worth of fire damage to his living room.

The _ _ is a comprehensive review and evaluation of the marketing function in an organization- -its philosophy, environment, goals, strategies, organizational structure, human and financial resources, and performance.

In most firms, a large proportion of the total orders, customers, territories, or products account for only a small share of the company's total sales or profits. This relationship is referred to as the _ _.

A _ _ analysis is a detailed study of the net sales section of a company's profit and loss statement.

_____ expenses include property tax, license fees, commissions, and media space.

_____ costs include order processing, order carrying, and advertising, as well as marketing administration.

_____ costs are also called separable expenses.

In the _____ approach to marketing cost analysis, only direct expenses are allocated to each marketing unit being analyzed.

By using the _____ approach to marketing cost analysis, management allocates all costs to determine the net profits of each unit being analyzed.