Question 1

A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses.

Accepted Answer

A) True 
 B)False

Question 2

At the Comfort Inn Web site, a customer can create an account with his preferences for a smoking or non-smoking room, the type of pillows he likes, early or late check-in and check-out, and his room location. The hotel keeps track of this information and uses it whenever this customer reserves a room in the future. This is an example of:

Accepted Answer

A)  Combined target market approach 
B)  Diversification 
C)  Task transfer 
D)  Mass customization 
E)  Single target market approach 
A)  Combined target market approach 
B)  Diversification 
C)  Task transfer 
D)  Mass customization 
E)  Single target market approach

Question 3

Natural accounts show the purpose for which expenditures are made.

Accepted Answer

A) True 
 B)False

Question 4

____ are an internal source of capital.

Accepted Answer

A)  Loans 
B)  Sale of stocks 
C)  Retained earnings 
D)  Sale of bonds 
E)  Private equity 
A)  Loans 
B)  Sale of stocks 
C)  Retained earnings 
D)  Sale of bonds 
E)  Private equity

Question 5

Which of the following aspects of production capacity should be considered in marketing planning?

Accepted Answer

A)  A firm can produce only limited quantities of its current product without a major investment in new facilities. 
B)  Other firms are available to handle production on a contract or supplier basis. 
C)  A firm's production capacity allows it to produce some products quickly but not others. 
D)  A firm has more production capacity than it can use. 
E)  All of the above. 
A)  A firm can produce only limited quantities of its current product without a major investment in new facilities. 
B)  Other firms are available to handle production on a contract or supplier basis. 
C)  A firm's production capacity allows it to produce some products quickly but not others. 
D)  A firm has more production capacity than it can use. 
E)  All of the above.

Question 6

While there are real human resources challenges in dealing with rapidly expanding marketing efforts, there are also challenges in dealing with decisions to drop products, channels of distribution, or even certain types of customers.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about mass customization is True?

Accepted Answer

A)  There has been a widespread shift to mass customization by thousands of companies. 
B)  The biggest successes in mass customization have all been in consumer markets as opposed to business markets. 
C)  If a company is to succeed with a mass customization strategy, it must be able to find a low-cost way to produce the products. 
D)  All of the above. 
E)  None of the above. 
A)  There has been a widespread shift to mass customization by thousands of companies. 
B)  The biggest successes in mass customization have all been in consumer markets as opposed to business markets. 
C)  If a company is to succeed with a mass customization strategy, it must be able to find a low-cost way to produce the products. 
D)  All of the above. 
E)  None of the above.

Question 8

A financial report that forecasts how much money will be available after paying expenses is a(n):

Accepted Answer

A)  Income statement. 
B)  Balance sheet. 
C)  Cash flow statement. 
D)  Capital report. 
E)  None of the above. 
A)  Income statement. 
B)  Balance sheet. 
C)  Cash flow statement. 
D)  Capital report. 
E)  None of the above.

Question 9

Production capacity is the ability to produce a certain quantity and quality of specific goods or services.

Accepted Answer

A) True 
 B)False

Question 10

Rapid growth strains human resources because it's a challenge getting enough qualified people.

Accepted Answer

A) True 
 B)False

Question 11

Many of the people affected by a new strategy may not be under the control of the marketing manager.

Accepted Answer

A) True 
 B)False

Question 12

A company has three products (X, Y, and Z) that it sells, packs, and ships to its customers. Because the products have different sizes they also have different packing and shipping costs so we will use a new measure-a packing/shipping unit. Because Product Y is the smallest of the three products, we will assign it a value of 1 packing/shipping unit. Product X is twice as big as Product Y and Product Z is four times as big as Product Y. On a monthly basis, this company sells an average of 1,500 units of Product X, 800 units of Product Y, and 60 units of Product Z. If the company spends on average of $3,720 each month on total packing/shipping costs, what amount should it allocate to Product X per month (to the nearest dollar amount)?

Accepted Answer

A)  $736 
B)  $1,380 
C)  $1,836 
D)  $2,500 
E)  $2,760 
A)  $736 
B)  $1,380 
C)  $1,836 
D)  $2,500 
E)  $2,760

Question 13

Before profits accumulate, a firm's selling price must cover all of the costs of doing business, including the interest charge on borrowed money.

Accepted Answer

A) True 
 B)False

Question 14

Each month the sales staff of TechPro Products makes an average of 209 sales calls on prospective customers at a cost of about $4,600 (salary plus expenses). What is the average cost of a sales call (to the nearest dollar amount)?

Accepted Answer

A)  $22 
B)  $25 
C)  $28 
D)  $31 
E)  $34 
A)  $22 
B)  $25 
C)  $28 
D)  $31 
E)  $34

Question 15

Each month the billing department of Lone Star Drilling, Inc., processes an average of 102 orders from customers at a cost of about $1,734 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

Accepted Answer

A)  $14 
B)  $17 
C)  $20 
D)  $22 
E)  $25 
A)  $14 
B)  $17 
C)  $20 
D)  $22 
E)  $25

Question 16

A marketing manager usually has responsibility for finding and allocating a firm's capital.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements about mass customization is true?

Accepted Answer

A)  Anderson's windows, which an architect can order in just about any combination of size, hardware, and style, is a good example of mass customization for business markets. 
B)  Mass customization avoids the need for working capital. 
C)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
D)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
E)  Mass customization reduces production costs but it's less likely to meet a customer's needs. 
A)  Anderson's windows, which an architect can order in just about any combination of size, hardware, and style, is a good example of mass customization for business markets. 
B)  Mass customization avoids the need for working capital. 
C)  Mass customization requires a firm to give up segmentation thinking to pursue larger, more heterogeneous markets. 
D)  The mass-customization approach applies only to services, and they often must be custom produced anyway. 
E)  Mass customization reduces production costs but it's less likely to meet a customer's needs.

Question 18

Apple is a good example of a company that uses its own internal funds to research, develop, and bring to market new products like the iPad, iPhone, and iPod.

Accepted Answer

A) True 
 B)False

Question 19

A major purpose of marketing cost analysis is to:

Accepted Answer

A)  determine which costs are fixed and which are variable. 
B)  avoid the pitfalls of the full-cost approach to allocating costs. 
C)  divide costs into natural accounts. 
D)  show the marketing manager where costs occur in relation to serving particular customers. 
E)  avoid the pitfalls of the contribution-margin approach to allocating costs. 
A)  determine which costs are fixed and which are variable. 
B)  avoid the pitfalls of the full-cost approach to allocating costs. 
C)  divide costs into natural accounts. 
D)  show the marketing manager where costs occur in relation to serving particular customers. 
E)  avoid the pitfalls of the contribution-margin approach to allocating costs.

Question 20

There's more risk for financial investors when the potential profits from a marketing plan are off in the future rather than immediate.

Accepted Answer

A) True 
 B)False

Exam 20: Managing Marketings Link With Other Functional Areas

A cash flow statement is a financial report that forecasts how much cash will be available after paying expenses.

Natural accounts show the purpose for which expenditures are made.

____ are an internal source of capital.

Which of the following aspects of production capacity should be considered in marketing planning?

While there are real human resources challenges in dealing with rapidly expanding marketing efforts, there are also challenges in dealing with decisions to drop products, channels of distribution, or even certain types of customers.

Which of the following statements about mass customization is True?

A financial report that forecasts how much money will be available after paying expenses is a(n):

Production capacity is the ability to produce a certain quantity and quality of specific goods or services.

Rapid growth strains human resources because it's a challenge getting enough qualified people.

Many of the people affected by a new strategy may not be under the control of the marketing manager.

Before profits accumulate, a firm's selling price must cover all of the costs of doing business, including the interest charge on borrowed money.

Each month the sales staff of TechPro Products makes an average of 209 sales calls on prospective customers at a cost of about $4,600 (salary plus expenses). What is the average cost of a sales call (to the nearest dollar amount)?

Each month the billing department of Lone Star Drilling, Inc., processes an average of 102 orders from customers at a cost of about $1,734 (in salaries and supplies). What is the average cost per order for this department (to the nearest dollar amount)?

A marketing manager usually has responsibility for finding and allocating a firm's capital.

Which of the following statements about mass customization is true?

Apple is a good example of a company that uses its own internal funds to research, develop, and bring to market new products like the iPad, iPhone, and iPod.

A major purpose of marketing cost analysis is to:

There's more risk for financial investors when the potential profits from a marketing plan are off in the future rather than immediate.

Marketings Value to Consumers, Firms, and Society

Marketing Strategy Planning

Evaluating Opportunities in the Changing Marketing Environment

Focusing Marketing Strategy With Segmentation and Positioning

Demographic Dimensions of Global Consumer Markets

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, Publicity, and Sales Promotion

Pricing Objectives and Policies

Price Setting in the Business World

Implementing and Controlling Marketing Plans: Evolution and Revolution

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

Economics Fundamentals

Marketing Arithmetic

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