Question 1

Regarding the choice between the "full-cost approach" and the "contribution margin approach" to marketing cost analysis:

Accepted Answer

A)  Top management tends to prefer the "full-cost approach." 
B)  The "full-cost" approach often leads to arguments within a company. 
C)  The choice of the method depends on the objectives of the analysis. 
D)  All of these are correct. 
A)  Top management tends to prefer the "full-cost approach." 
B)  The "full-cost" approach often leads to arguments within a company. 
C)  The choice of the method depends on the objectives of the analysis. 
D)  All of these are correct.

Question 2

Performance indexes:

Accepted Answer

A)  are based on the "iceberg principle." 
B)  show the relation of one value to another. 
C)  are used mainly to eliminate lazy salespeople. 
D)  provide a qualitative measure of what "ought to happen." 
E)  are calculated from the Consumer Price Index. 
A)  are based on the "iceberg principle." 
B)  show the relation of one value to another. 
C)  are used mainly to eliminate lazy salespeople. 
D)  provide a qualitative measure of what "ought to happen." 
E)  are calculated from the Consumer Price Index.

Question 3

Sales analysis:

Accepted Answer

A)  typically involves reorganizing existing information rather than gathering new information. 
B)  may involve analyzing many different breakdowns of overall sales. 
C)  is usually a good first step when setting up a control system. 
D)  All of these are true. 
A)  typically involves reorganizing existing information rather than gathering new information. 
B)  may involve analyzing many different breakdowns of overall sales. 
C)  is usually a good first step when setting up a control system. 
D)  All of these are true.

Question 4

Performance analysis:

Accepted Answer

A)  is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data. 
B)  is most useful in situations where the iceberg principal is not likely to be a concern. 
C)  indicates why problems have occurred and how to solve them. 
D)  may be based on several different performance indexes. 
E)  All of these are true. 
A)  is based on qualitative factors, as contrasted with sales and cost analysis which are based on quantitative data. 
B)  is most useful in situations where the iceberg principal is not likely to be a concern. 
C)  indicates why problems have occurred and how to solve them. 
D)  may be based on several different performance indexes. 
E)  All of these are true.

Question 5

A marketing audit is similar to an accounting audit or a personnel audit,which businesses have used for some time.

Accepted Answer

A) True 
 B)False

Question 6

Premier Bank considers population an effective measure of sales potential for its safe deposit boxes.It has broken down the population of the U.S.by region and assigned 30 percent of the total population to the Northeastern region.If Premier has a planned sales goal of $2.5 million nationwide,and actual sales in the Northeastern region last year were $650,000,what was the Northeastern region's performance index (to the nearest whole number percent)?

Accepted Answer

A)  33 percent 
B)  50 percent 
C)  66 percent 
D)  75 percent 
E)  87 percent 
A)  33 percent 
B)  50 percent 
C)  66 percent 
D)  75 percent 
E)  87 percent

Question 7

The best way to break down and analyze sales data is:

Accepted Answer

A)  by order size. 
B)  by geographic region. 
C)  by customer type. 
D)  by product, package, size, grade or color. 
E)  any of these are correct, depending on the situation. 
A)  by order size. 
B)  by geographic region. 
C)  by customer type. 
D)  by product, package, size, grade or color. 
E)  any of these are correct, depending on the situation.

Question 8

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

Accepted Answer

A)  analysis 
B)  control 
C)  organization 
D)  research 
E)  supervision 
A)  analysis 
B)  control 
C)  organization 
D)  research 
E)  supervision

Question 9

With the "contribution-margin approach" to marketing cost analysis,

Accepted Answer

A)  all costs are allocated to products, customers, or other categories. 
B)  fixed costs are allocated based on the profit contribution to the firm. 
C)  variable costs are treated as common costs. 
D)  common costs which are hard to allocate are ignored. 
E)  None of these is true. 
A)  all costs are allocated to products, customers, or other categories. 
B)  fixed costs are allocated based on the profit contribution to the firm. 
C)  variable costs are treated as common costs. 
D)  common costs which are hard to allocate are ignored. 
E)  None of these is true.

Question 10

With the contribution-margin approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements might result from a performance analysis?

Accepted Answer

A)  Our California salesman sold more aluminum tubing than any of our other reps. 
B)  Sophia Sanchez calls on two of our three biggest customers. 
C)  Joshua Voigt sold less tubing to wholesalers than to manufacturers. 
D)  Walker Brown sold more aluminum tubing than steel tubing. 
E)  Pele Ruiz's sales are over his quota. 
A)  Our California salesman sold more aluminum tubing than any of our other reps. 
B)  Sophia Sanchez calls on two of our three biggest customers. 
C)  Joshua Voigt sold less tubing to wholesalers than to manufacturers. 
D)  Walker Brown sold more aluminum tubing than steel tubing. 
E)  Pele Ruiz's sales are over his quota.

Question 12

The basic objectives of implementation are to do things:

Accepted Answer

A)  better. 
B)  faster. 
C)  at lower cost. 
D)  All of these are true. 
A)  better. 
B)  faster. 
C)  at lower cost. 
D)  All of these are true.

Question 13

With the full-cost approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

Accepted Answer

A) True 
 B)False

Question 14

A company produces three product lines and a different marketing manager is responsible for each line.Most marketing expenses are specific to each line,but a common sales force sells all three lines.Sales reps are paid by commission,with a different commission for each product line.In this case,in a marketing cost analysis,

Accepted Answer

A)  the contribution-margin approach would probably divide personal selling expense based on commission expense for each product line. 
B)  a full-cost approach would ignore commission expense since it is not a fixed cost. 
C)  sales commissions are a variable expense and would not be considered in the contribution-margin approach. 
D)  the full-cost approach would be easier to do if all sales reps were paid a straight salary. 
E)  None of these is true. 
A)  the contribution-margin approach would probably divide personal selling expense based on commission expense for each product line. 
B)  a full-cost approach would ignore commission expense since it is not a fixed cost. 
C)  sales commissions are a variable expense and would not be considered in the contribution-margin approach. 
D)  the full-cost approach would be easier to do if all sales reps were paid a straight salary. 
E)  None of these is true.

Question 15

The "iceberg principle":

Accepted Answer

A)  explains why some firm's sales are "cooler" that others. 
B)  explains why some customers are more profitable than others. 
C)  suggests that sales will vary from one territory to another. 
D)  suggests that much good information may be hidden in summary data. 
E)  says that sales reps should never make "cold calls" on customers. 
A)  explains why some firm's sales are "cooler" that others. 
B)  explains why some customers are more profitable than others. 
C)  suggests that sales will vary from one territory to another. 
D)  suggests that much good information may be hidden in summary data. 
E)  says that sales reps should never make "cold calls" on customers.

Question 16

_________ are the two basic approaches to handling marketing cost allocation problems.

Accepted Answer

A)  The average-cost approach and the break-even approach 
B)  The performance-analysis approach and the sales-analysis approach 
C)  The revenues approach and the expenses approach 
D)  The gross margin approach and the net margin approach 
E)  The full-cost approach and the contribution-margin approach 
A)  The average-cost approach and the break-even approach 
B)  The performance-analysis approach and the sales-analysis approach 
C)  The revenues approach and the expenses approach 
D)  The gross margin approach and the net margin approach 
E)  The full-cost approach and the contribution-margin approach

Question 17

A marketing audit evaluates the whole marketing program.

Accepted Answer

A) True 
 B)False

Question 18

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

Accepted Answer

A)  The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs. 
B)  The full-cost approach allocates all costs-even fixed costs-to products, customers, or other categories. 
C)  The contribution-margin approach allocates all costs to show how profitable various customers are. 
D)  The full-cost approach focuses on variable costs rather than total costs. 
A)  The contribution-margin approach uses both mechanical and logical reasoning to allocate marketing costs. 
B)  The full-cost approach allocates all costs-even fixed costs-to products, customers, or other categories. 
C)  The contribution-margin approach allocates all costs to show how profitable various customers are. 
D)  The full-cost approach focuses on variable costs rather than total costs.

Question 19

The main purpose of a performance analysis is to:

Accepted Answer

A)  see whether or not the 80/20 rule applies in a particular situation. 
B)  uncover variations in performance that may be hidden in summary information. 
C)  determine who should receive a performance bonus when profit is greater than expected. 
D)  determine if the marketing budget is large enough to achieve the expected sales performance. 
E)  provide a detailed breakdown of a company's sales records. 
A)  see whether or not the 80/20 rule applies in a particular situation. 
B)  uncover variations in performance that may be hidden in summary information. 
C)  determine who should receive a performance bonus when profit is greater than expected. 
D)  determine if the marketing budget is large enough to achieve the expected sales performance. 
E)  provide a detailed breakdown of a company's sales records.

Question 20

The "full-cost approach" to marketing cost analysis:

Accepted Answer

A)  Allocates all costs, except fixed costs, to products, customers, or other categories. 
B)  Is designed so that customers, products, or other categories are always allocated an equal amount of costs. 
C)  Requires that difficult-to-allocate costs be split in some way. 
D)  Should always be avoided. 
E)  None of these are correct. 
A)  Allocates all costs, except fixed costs, to products, customers, or other categories. 
B)  Is designed so that customers, products, or other categories are always allocated an equal amount of costs. 
C)  Requires that difficult-to-allocate costs be split in some way. 
D)  Should always be avoided. 
E)  None of these are correct.

Regarding the choice between the "full-cost approach" and the "contribution margin approach" to marketing cost analysis:

Performance indexes:

Sales analysis:

Performance analysis:

A marketing audit is similar to an accounting audit or a personnel audit,which businesses have used for some time.

The best way to break down and analyze sales data is:

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

With the "contribution-margin approach" to marketing cost analysis,

With the contribution-margin approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

Which of the following statements might result from a performance analysis?

The basic objectives of implementation are to do things:

With the full-cost approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

The "iceberg principle":

_________ are the two basic approaches to handling marketing cost allocation problems.

A marketing audit evaluates the whole marketing program.

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

The main purpose of a performance analysis is to:

The "full-cost approach" to marketing cost analysis:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters

Exam 2: Implementing and Controlling Marketing Plans: Evolution and Revolution

Regarding the choice between the "full-cost approach" and the "contribution margin approach" to marketing cost analysis:

Performance indexes:

Sales analysis:

Performance analysis:

A marketing audit is similar to an accounting audit or a personnel audit,which businesses have used for some time.

The best way to break down and analyze sales data is:

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and _________________.

With the "contribution-margin approach" to marketing cost analysis,

With the contribution-margin approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

Which of the following statements might result from a performance analysis?

The basic objectives of implementation are to do things:

With the full-cost approach to marketing cost analysis,all costs are allocated to products,customers,or other categories.

The "iceberg principle":

_________ are the two basic approaches to handling marketing cost allocation problems.

A marketing audit evaluates the whole marketing program.

The main difference between the full-cost approach and the contribution-margin approach to marketing cost analysis is:

The main purpose of a performance analysis is to:

The "full-cost approach" to marketing cost analysis:

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Managing Marketings Link With Other Functional Areas

Evaluating Opportunities in the Changing Market Environment

Focusing Marketing Strategy With Segmentation and Positioning

Final Consumers and Their Buying Behavior

Business and Organizational Customers and Their Buying Behavior

Improving Decisions With Marketing Information

Elements of Product Planning for Goods and Services

Product Management and New-Product Development

Place and Development of Channel Systems

Distribution Customer Service and Logistics

Retailers, Wholesalers, and Their Strategy Planning

Promotion-Introduction to Integrated Marketing Communications

Personal Selling and Customer Service

Advertising and Sales Promotion

Publicity: Promotion Using Earned Media, Owned Media, and Social Media

Pricing Objectives and Policies

Price Setting in the Business World

Ethical Marketing in a Consumer-Oriented World: Appraisal and Challenges

Filters